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The Zacks Analyst Blog Highlights: Lifetime Brands, Alto Ingredients, Party City Holdco, Prestige Consumer Healthcare and RCI Hospitality

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For Immediate Release

Chicago, IL – September 1, 2021 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Lifetime Brands, Inc. (LCUT - Free Report) , Alto Ingredients, Inc. (ALTO - Free Report) , Party City Holdco Inc. , Prestige Consumer Healthcare Inc. (PBH - Free Report) and RCI Hospitality Holdings, Inc. (RICK - Free Report) .

Here are highlights from Tuesday’s Analyst Blog:

Consumer Spending, Personal Income Continue to Rise: 5 Picks

U.S. consumer spending grew in July, with millions spending freely as the economy continued to reopen. Although the pace slowed down somewhat, people clearly started showing faith in the economy.

Also, personal income rose in July, justifying the rise in spending. With the vaccination drive in full swing, people regained confidence and started spending at ease.

Consumer Spending Rebounds

U.S. consumer spending increased 0.3% in July, after a 1.1% uptick in June, according to the Commerce Department. Despite the deceleration, the gain in July confirms people's faith in the economy. Consumer spending accounts for almost two-thirds of total U.S. activity.

Spending on services increased 1% in July, driven by the hospitality and food services. However, spending on goods fell 1.1% last month. 

The foundation for economic recovery seems solid given that wages have continued to rise lately. Also, personal savings have been on the rise. Households managed to save around $25 trillion more during the pandemic.

The savings rate increased to 9.6% in July from 8.8% in June, which may have somewhat slowed down spending. Also, personal income rose 1.1% in July.

Economy on Solid Ground

A rise in consumer spending coupled with a jump in personal income has given people more confidence. Although fears of the Delta variant of the coronavirus have somewhat unsettled things, it hasn't impacted much.

Aside from the confidence that the vaccination drive is giving and the rise in personal income, hiring is at multi-year highs. Many who were laid off or were furloughed last year during the peak of the pandemic are finally getting back their jobs.

Given this situation, consumer discretionary seems to be the ideal sector to invest in. The Consumer Discretionary Select Sector SPDR (XLY) has returned 21.6% in the past year.

Our Choices

We have picked five stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) that are poised to benefit in the near term. You can see the complete list of today's Zacks #1 Rank stocks here.

Lifetime Brands is a leading designer, marketer and distributor of kitchenware, cutlery & cutting boards, bakeware & cookware, pantryware & spices, tabletop and bath accessories.

The company's expected earnings growth rate for the current year is 46.3%. The Zacks Consensus Estimate for current-year earnings improved 6.1% over the past 30 days. The company carries a Zacks Rank #1.

Alto Ingredients is a producer of specialty alcohol and essential ingredients. The company is focused on products that include Health, Home & Beauty; Food & Beverage; Essential Ingredients and Renewable Fuels. 

The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 2.3% over the past 30 days. Alto Ingredients has a Zacks Rank #2.

Party City Holdco is involved in the design, manufacture and contracts for manufacturing and distribution of party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery.

The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings improved 6.5% over the past 30 days. Party City has a Zacks Rank #2.

Prestige Consumer Healthcare and its subsidiaries develop, manufacture, market, sell and distribute over-the-counter healthcare and household cleaning products in United States, Canada, Australia and certain other international markets.

The company's expected earnings growth rate for the current year is 22.8%. The Zacks Consensus Estimate for current-year earnings has improved 10.6% over the past 30 days. Prestige Consumer Healthcare has a Zacks Rank #2.

RCI Hospitality Holdings owns and operates adult nightclubs that offer live adult entertainment, restaurant and bar services.

The company's expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 14.8% over the past 30 days. RCI Hospitality Holdings has a Zacks Rank #2.

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