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Park Hotels & Resorts and Thor Industries have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – July 12, 2024 – Zacks Equity Research shares Park Hotels & Resorts (PK - Free Report) as the Bull of the Day and Thor IndustriesTHOR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Vistra (VST - Free Report) , Walmart (WMT - Free Report) and Abercrombie & Fitch (ANF - Free Report) .
Park Hotels & Resorts is a Zacks Rank #1 (Strong Buy) that is a prominent publicly traded lodging REIT, boasting a diverse portfolio of leading hotels and resorts.
Park is posting continued beats on earnings and pays a dividend of 7%. Estimates are slowly trending higher and with the stock selling off in recent months, PK is starting to look attractive at current levels.
About the Company
Park Hotels & Resorts was a spin-off of Hilton Worldwide in 2017 and is headquartered in Tysons, Virginia. The company focuses on active asset management to enhance the value and performance of its properties.
Park's portfolio currently consists of 43 premium-branded hotels and resorts with over 26,000 rooms primarily located in prime city center and resort locations.
The stock has Zacks Style Scores of "A" in Value, but "D" in both Growth and Momentum. The company has a market cap has a market cap of $3 billion and a Forward PE of 6. As mentioned above, the 7% dividend makes the stock a dividend value play for longer-term investors.
Q1 Earnings Beat
In late April, the company reported an 18% EPS beat. This was another earnings beat for the company that has posted a winning streak going back to 2020.
Park raised its 2024 outlook, not seeing FFO at $2.07-$2.15 up from the $2.02-$2.22 prior. EBITDA was raised to $655-695M, up from a prior range of $645-685M.
Total RevPAR was up 6.6% y/y and adjusted EBITDA margins were up 190bps from last year.
The company will report earnings on 7/31 and there looks to be positive momentum since the last earnings report.
Analyst Estimates Headed Higher
Analysts have slowly been hiking earnings estimates over the last 90 days.
For the current quarter, estimates have gone from $0.60 to $0.64, or 6%.
For the current year, estimates have been taken 4% higher, going from $2.10 to $2.20.
Looking longer term, there has been little movement, but estimates are going higher. Over the last 60 days, numbers have been taken from $2.26 to $2.30, or 2%.
Evercore ISS raised PK to Outperform after earnings, with a price target set at $20.
The Technicals
The stock took off in late 2023, moving from $12 to $17. After some brief consolidation, it made new highs this past April at $18.
However, since those highs, the stock has slowly fallen back to the $14 area. For Fibonacci fans, this spot is the 61.8% retracement area. The $13.75-14.50 range is the Fib buy zone, which if it holds, could be a great long-term entry.
Even if this area doesn't hold, the dividend likely supports the stock in the $12-13 range that held up in 2023.
Bottom Line
With rates going lower, dividend stocks might start to look more attractive to investors. These names have been discarded over the last year in favor of big tech. But with rates headed lower, that narrative could flip.
Current levels look attractive for an entry into PK for a long-term value play. While that story plays out, investors can collect a healthy dividend.
Thor Industries is a Zacks Rank #5 (Strong Sell) that is the world's largest manufacturer of recreational vehicles (RVs). The company produces a wide variety of RVs in North America and Europe, selling them along with related parts and accessories to independent, non-franchise dealers across the United States, Canada, and Europe.
The stock has taken another leg lower after an earnings report and is challenging 2023 lows. With earnings disappointing and estimates headed lower, investors should be cautious at current levels.
About the Company
Thor was founded in 1980 is headquartered in Elkhart, IN. The company employs over almost 25,000 and has a market cap of $5 billion.
Through its subsidiaries, Thor is the leading RV maker in North America in terms of unit sales and revenue. Its North American operating subsidiaries include Airstream, Thor Motor Coach, Tiffin Motorhomes, DRV, Keystone, Heartland, KZ, and Jayco. Each subsidiary operates independently under the company's decentralized structure, making Thor the top player in travel trailers, fifth wheels, and motorized RVs in North America.
Thor operates under three reportable segments: North American Towable Recreational Vehicles (39.8% of total RV revenues in fiscal 2023), North American Motorized Recreational Vehicles (31.3%), and European Recreational Vehicles (28.9%).
THO holds Zacks Style Scores of "B" in Value, but "F" in Momentum. The stock pays a 2% dividend and hasa Forward PE of 20.
Q3 Earnings
In early June, Thor reported Q3 earnings of $2.13 per share, surpassing the expected $1.89 per share, with revenue of $2.80 billion, also exceeding the forecasted $2.72 billion.
Despite the earnings beat, the company has lowered its financial outlook for the fiscal year due to ongoing economic pressures affecting retail buyers.
The revised guidance for FY24 includes earnings of $4.50-4.75 per share (down from $5.00-5.50) and revenue of $9.8-10.1 billion (down from $10.0-10.5 billion), with a gross margin of 13.75-14.0% (previously 14-14.5%).
Thor Industries also adjusted its North American shipments outlook, reducing the expected range to 315,000-325,000 units from the previous 330,000-340,000 units. The company reported a 15.1% gross profit margin, a 30-basis point increase year-over-year. However, North American Towable RV sales declined to $1.07 billion from $1.12 billion year-over-year, and North American Motorized RV sales dropped to $647 million from $796 million. The European order backlog significantly decreased to $1.94 billion from $3.47 billion year-over-year.
Thor noted that while independent dealers saw increased retail activity during the Spring selling season, conversion to sales remained challenging due to economic pressures and high floor plan interest rates, leading to cautious ordering patterns, and suppressed inventory levels.
With the weak outlook, analysts are lowering estimates.
Earnings Estimates
Over the last 60 days, analysts have lowered numbers for the current quarter from $2.17 to $1.35. This is a drop of 37% that has occurred since the earnings release.
For the next quarter, estimates have fallen to $1.62 from $1.22, or 25%.
Looking longer term, the numbers do not improve. Over the last 60 days, estimates for 2025 have dropped from $7.52 to $6.77, or 10%.
Technical Take
The stock dropped over 10% since the earnings release but has since bounced off the lows around the $88 level. The stock has come back to the 50-day MA at $97, and investors might want to take some profits due to the poor fundamental outlook.
The 200-day MA at $104 would be the next opportunity If the bulls have the ability to take the stock higher. However, the bearish trend still looks to be in place, and a revisit to the $93 area, where the 21-day MA resides, is likely.
THO has always been a volatile name and has traded around the $100 level since 2017. Investors should not expect this to change anytime soon with earnings estimates trending lower.
In Summary
Despite being the world's largest manufacturer of recreational vehicles, Thor faces significant challenges in the current economic environment. The company's recent Q3 earnings report showed a mixed performance, with earnings and revenue surpassing expectations but a lowered financial outlook for the fiscal year. The revised guidance, coupled with declining sales in key segments and a substantial drop in the European order backlog, underscores the difficulties Thor is encountering due to economic pressures on retail buyers and high floor plan interest rates.
Additional content:
3 Non-Tech Stock That Have Delivered Outsized Gains
Tech stocks have been the craze for some time, with excitement surrounding the AI story and a resilient economy providing favorable tailwinds for many stocks in the sector.
But perhaps to the surprise of some, several non-tech stocks have delivered outsized gains in 2024, a list that includes Vistra,Walmart and Abercrombie & Fitch.
VST and ANF shares have been in a league of their own, muting WMT's impressive 35% gain. Let's take a closer look at what's been driving the bullish behavior.
Vistra Goes Nuclear for AI
Vistra safely operates a reliable, efficient, power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities with an innovative, customer-centric approach. The stock sports a Zacks Rank #1 (Strong Buy), with its earnings outlook moving higher nearly across all timeframes.
Shares reflect a unique angle to tap into the AI play, with its nuclear offerings pairing nicely with the high-power needs within data centers. It's also worth noting that the stock recently joined the S&P 500 back in early May, undoubtedly a positive development.
Income-focused investors could also be attracted, with shares currently yielding a modest 1% annually. While the yield has decreased amid the positive price action, Vistra's 14% five-year annualized dividend growth rate reflects a commitment to increasingly rewarding shareholders.
Shares have found support near the 50-day moving average after its pullback, now making higher highs and reflecting overall healthy price action.
Walmart Shares Climb Post Split
Walmart shares have continued to climb higher amid favorable quarterly results, with the company's profitability seeing a nice improvement. Earnings saw year-over-year growth of 22% throughout its latest period, whereas sales climbed 6% from the same period last year.
It's worth mentioning that the retail giant underwent a 3-for-1 split this year, with shares trading on a split-adjusted basis starting on February 26. The revisions trend for its current fiscal year has remained positive, with the stock sporting a favorable Zacks Rank #1 (Strong Buy).
Walmart's eCommerce sales have been a great story for the company, pleasing investors with their digital efforts. Global eCommerce sales throughout its latest period grew 21% year-over-year, reflecting yet again another strong quarter for the company in the metric.
Abercrombie & Fitch Sees Brand Revival
Abercrombie & Fitch, a current Zacks Rank #1 (Strong Buy), has posted consistently robust quarterly results. Over its last four releases, the apparel favorite has exceeded the Zacks Consensus EPS estimate by an impressive average of 210%.
Analysts have become bullish, raising their earnings expectations across the board.
Concerning the above-mentioned results, ANF posted record Q1 sales of $1.0 billion in its latest release, climbing 22% year-over-year thanks to continued brand momentum. ANF raised its full-year sales outlook following the strong period, helping explain the post-earnings pop in shares.
The company's growth profile remains bright, with consensus expectations for its current fiscal year suggesting 48% EPS growth on 10% higher sales. The stock sports a Style Score of 'B' for Growth.
Bottom Line
While it can sometimes feel that tech stocks have hogged all the gains, it certainly hasn't been the case, as shown by the above examples.
All three stocks sport a favorable Zacks Rank, reflecting near-term bullishness among analysts.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Park Hotels & Resorts and Thor Industries have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 12, 2024 – Zacks Equity Research shares Park Hotels & Resorts (PK - Free Report) as the Bull of the Day and Thor IndustriesTHOR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Vistra (VST - Free Report) , Walmart (WMT - Free Report) and Abercrombie & Fitch (ANF - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Park Hotels & Resorts is a Zacks Rank #1 (Strong Buy) that is a prominent publicly traded lodging REIT, boasting a diverse portfolio of leading hotels and resorts.
Park is posting continued beats on earnings and pays a dividend of 7%. Estimates are slowly trending higher and with the stock selling off in recent months, PK is starting to look attractive at current levels.
About the Company
Park Hotels & Resorts was a spin-off of Hilton Worldwide in 2017 and is headquartered in Tysons, Virginia. The company focuses on active asset management to enhance the value and performance of its properties.
Park's portfolio currently consists of 43 premium-branded hotels and resorts with over 26,000 rooms primarily located in prime city center and resort locations.
The stock has Zacks Style Scores of "A" in Value, but "D" in both Growth and Momentum. The company has a market cap has a market cap of $3 billion and a Forward PE of 6. As mentioned above, the 7% dividend makes the stock a dividend value play for longer-term investors.
Q1 Earnings Beat
In late April, the company reported an 18% EPS beat. This was another earnings beat for the company that has posted a winning streak going back to 2020.
Park raised its 2024 outlook, not seeing FFO at $2.07-$2.15 up from the $2.02-$2.22 prior. EBITDA was raised to $655-695M, up from a prior range of $645-685M.
Total RevPAR was up 6.6% y/y and adjusted EBITDA margins were up 190bps from last year.
The company will report earnings on 7/31 and there looks to be positive momentum since the last earnings report.
Analyst Estimates Headed Higher
Analysts have slowly been hiking earnings estimates over the last 90 days.
For the current quarter, estimates have gone from $0.60 to $0.64, or 6%.
For the current year, estimates have been taken 4% higher, going from $2.10 to $2.20.
Looking longer term, there has been little movement, but estimates are going higher. Over the last 60 days, numbers have been taken from $2.26 to $2.30, or 2%.
Evercore ISS raised PK to Outperform after earnings, with a price target set at $20.
The Technicals
The stock took off in late 2023, moving from $12 to $17. After some brief consolidation, it made new highs this past April at $18.
However, since those highs, the stock has slowly fallen back to the $14 area. For Fibonacci fans, this spot is the 61.8% retracement area. The $13.75-14.50 range is the Fib buy zone, which if it holds, could be a great long-term entry.
Even if this area doesn't hold, the dividend likely supports the stock in the $12-13 range that held up in 2023.
Bottom Line
With rates going lower, dividend stocks might start to look more attractive to investors. These names have been discarded over the last year in favor of big tech. But with rates headed lower, that narrative could flip.
Current levels look attractive for an entry into PK for a long-term value play. While that story plays out, investors can collect a healthy dividend.
Bear of the Day:
Thor Industries is a Zacks Rank #5 (Strong Sell) that is the world's largest manufacturer of recreational vehicles (RVs). The company produces a wide variety of RVs in North America and Europe, selling them along with related parts and accessories to independent, non-franchise dealers across the United States, Canada, and Europe.
The stock has taken another leg lower after an earnings report and is challenging 2023 lows. With earnings disappointing and estimates headed lower, investors should be cautious at current levels.
About the Company
Thor was founded in 1980 is headquartered in Elkhart, IN. The company employs over almost 25,000 and has a market cap of $5 billion.
Through its subsidiaries, Thor is the leading RV maker in North America in terms of unit sales and revenue. Its North American operating subsidiaries include Airstream, Thor Motor Coach, Tiffin Motorhomes, DRV, Keystone, Heartland, KZ, and Jayco. Each subsidiary operates independently under the company's decentralized structure, making Thor the top player in travel trailers, fifth wheels, and motorized RVs in North America.
Thor operates under three reportable segments: North American Towable Recreational Vehicles (39.8% of total RV revenues in fiscal 2023), North American Motorized Recreational Vehicles (31.3%), and European Recreational Vehicles (28.9%).
THO holds Zacks Style Scores of "B" in Value, but "F" in Momentum. The stock pays a 2% dividend and hasa Forward PE of 20.
Q3 Earnings
In early June, Thor reported Q3 earnings of $2.13 per share, surpassing the expected $1.89 per share, with revenue of $2.80 billion, also exceeding the forecasted $2.72 billion.
Despite the earnings beat, the company has lowered its financial outlook for the fiscal year due to ongoing economic pressures affecting retail buyers.
The revised guidance for FY24 includes earnings of $4.50-4.75 per share (down from $5.00-5.50) and revenue of $9.8-10.1 billion (down from $10.0-10.5 billion), with a gross margin of 13.75-14.0% (previously 14-14.5%).
Thor Industries also adjusted its North American shipments outlook, reducing the expected range to 315,000-325,000 units from the previous 330,000-340,000 units. The company reported a 15.1% gross profit margin, a 30-basis point increase year-over-year. However, North American Towable RV sales declined to $1.07 billion from $1.12 billion year-over-year, and North American Motorized RV sales dropped to $647 million from $796 million. The European order backlog significantly decreased to $1.94 billion from $3.47 billion year-over-year.
Thor noted that while independent dealers saw increased retail activity during the Spring selling season, conversion to sales remained challenging due to economic pressures and high floor plan interest rates, leading to cautious ordering patterns, and suppressed inventory levels.
With the weak outlook, analysts are lowering estimates.
Earnings Estimates
Over the last 60 days, analysts have lowered numbers for the current quarter from $2.17 to $1.35. This is a drop of 37% that has occurred since the earnings release.
For the next quarter, estimates have fallen to $1.62 from $1.22, or 25%.
Looking longer term, the numbers do not improve. Over the last 60 days, estimates for 2025 have dropped from $7.52 to $6.77, or 10%.
Technical Take
The stock dropped over 10% since the earnings release but has since bounced off the lows around the $88 level. The stock has come back to the 50-day MA at $97, and investors might want to take some profits due to the poor fundamental outlook.
The 200-day MA at $104 would be the next opportunity If the bulls have the ability to take the stock higher. However, the bearish trend still looks to be in place, and a revisit to the $93 area, where the 21-day MA resides, is likely.
THO has always been a volatile name and has traded around the $100 level since 2017. Investors should not expect this to change anytime soon with earnings estimates trending lower.
In Summary
Despite being the world's largest manufacturer of recreational vehicles, Thor faces significant challenges in the current economic environment. The company's recent Q3 earnings report showed a mixed performance, with earnings and revenue surpassing expectations but a lowered financial outlook for the fiscal year. The revised guidance, coupled with declining sales in key segments and a substantial drop in the European order backlog, underscores the difficulties Thor is encountering due to economic pressures on retail buyers and high floor plan interest rates.
Additional content:
3 Non-Tech Stock That Have Delivered Outsized Gains
Tech stocks have been the craze for some time, with excitement surrounding the AI story and a resilient economy providing favorable tailwinds for many stocks in the sector.
But perhaps to the surprise of some, several non-tech stocks have delivered outsized gains in 2024, a list that includes Vistra,Walmart and Abercrombie & Fitch.
VST and ANF shares have been in a league of their own, muting WMT's impressive 35% gain. Let's take a closer look at what's been driving the bullish behavior.
Vistra Goes Nuclear for AI
Vistra safely operates a reliable, efficient, power generation fleet of natural gas, nuclear, coal, solar, and battery energy storage facilities with an innovative, customer-centric approach. The stock sports a Zacks Rank #1 (Strong Buy), with its earnings outlook moving higher nearly across all timeframes.
Shares reflect a unique angle to tap into the AI play, with its nuclear offerings pairing nicely with the high-power needs within data centers. It's also worth noting that the stock recently joined the S&P 500 back in early May, undoubtedly a positive development.
Income-focused investors could also be attracted, with shares currently yielding a modest 1% annually. While the yield has decreased amid the positive price action, Vistra's 14% five-year annualized dividend growth rate reflects a commitment to increasingly rewarding shareholders.
Shares have found support near the 50-day moving average after its pullback, now making higher highs and reflecting overall healthy price action.
Walmart Shares Climb Post Split
Walmart shares have continued to climb higher amid favorable quarterly results, with the company's profitability seeing a nice improvement. Earnings saw year-over-year growth of 22% throughout its latest period, whereas sales climbed 6% from the same period last year.
It's worth mentioning that the retail giant underwent a 3-for-1 split this year, with shares trading on a split-adjusted basis starting on February 26. The revisions trend for its current fiscal year has remained positive, with the stock sporting a favorable Zacks Rank #1 (Strong Buy).
Walmart's eCommerce sales have been a great story for the company, pleasing investors with their digital efforts. Global eCommerce sales throughout its latest period grew 21% year-over-year, reflecting yet again another strong quarter for the company in the metric.
Abercrombie & Fitch Sees Brand Revival
Abercrombie & Fitch, a current Zacks Rank #1 (Strong Buy), has posted consistently robust quarterly results. Over its last four releases, the apparel favorite has exceeded the Zacks Consensus EPS estimate by an impressive average of 210%.
Analysts have become bullish, raising their earnings expectations across the board.
Concerning the above-mentioned results, ANF posted record Q1 sales of $1.0 billion in its latest release, climbing 22% year-over-year thanks to continued brand momentum. ANF raised its full-year sales outlook following the strong period, helping explain the post-earnings pop in shares.
The company's growth profile remains bright, with consensus expectations for its current fiscal year suggesting 48% EPS growth on 10% higher sales. The stock sports a Style Score of 'B' for Growth.
Bottom Line
While it can sometimes feel that tech stocks have hogged all the gains, it certainly hasn't been the case, as shown by the above examples.
All three stocks sport a favorable Zacks Rank, reflecting near-term bullishness among analysts.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.