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The Zacks Analyst Blog Sirius, Royal Caribbean Cruises, Norwegian Cruise Line, Paramount and Crocs
Read MoreHide Full Article
For Immediate Releases
Chicago, IL – September 17, 2024 – 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: Sirius XM Holdings Inc. (SIRI - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , Paramount Global (PARAA - Free Report) and Crocs Inc. (CROX - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Buy 5 Consumer Discretionary Stocks Ahead of Fed FOMC to Gain Big
Market participants across the world are eagerly waiting for the upcoming Fed FOMC meeting scheduled Sept. 17-18. At present, the financial investment community is extremely hopeful that a rate regime will be initiated in the September FOMC meeting for the first time after March 2020. The CME FedWatch tool currently shows a 100% probability of a 25-basis point cut along with a 50% possibility of a 50-basis point cut in September.
At this stage, investment in consumer discretionary stocks should be prudent to earn profits in the near term. Here we offer five consumer discretionary stocks — Sirius XM Holdings Inc., Royal Caribbean Cruises Ltd., Norwegian Cruise Line Holdings Ltd., Paramount Global and Crocs Inc.
These five stocks have seen positive earnings estimate revisions in the last 60 days and have handsome short-term price appreciation potential. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Why Consumer Discretionary Stocks?
The consumer discretionary sector is generally recognized as being growth-oriented. Growth sectors are highly sensitive to the movement of the market interest rate and are inversely related. Companies in this space need a cheap source of credit for businesses. Investors derive returns from these stocks’ investments over a period of time.
A low market interest rate regime will reduce the discount rate thereby increasing the net present value of investment in these stocks. On the other hand, the fundamentals of the U.S. economy remain solid.
The U.S. GDP grew at 1.4% in first-quarter 2024. The second reading of second-quarter GDP was 3%. On Sept. 9, the Atlanta Fed GDPNow projected a 2.5% GDP growth rate for the third quarter.
A recession means contraction of GDP (negative GDP growth rate) for two consecutive quarters. As the recession fear evaporates, the consumer discretionary sector is likely to perform well buoyed by strong personal consumption expenditures.
Buy 5 Consumer Discretionary Stocks Ahead of the Fed FOMC Meeting
Sirius XM Holdings Inc.
Zacks Rank #1 Sirius XM has been benefiting from an improvement in ad revenues, offset by a decline in Sirius XM Standalone’s paid promotional subscribers. SIRI continues to bolster its content offerings by adding content from all spheres, including music, politics, news and sports, to its platform. SIRI’s expanded podcast efforts fit well with the existing advertising-led focus at Pandora and AdsWizz and are expected to improve monetization in the near term.
Sirius XM has an expected revenue and earnings growth rate of 1.3% and 8.3%, respectively, for next year. The Zacks Consensus Estimate for the next-quarter, current-year and next-year earnings has improved over the last 60 days.
Zacks Rank #2 Crocs has been benefiting from solid consumer demand for the Crocs brand, accompanied by effective pricing actions and lower freight costs. CROX has been experiencing strength in clogs, sandals and personalization for a while. Strong demand trends led to impressive results during second-quarter 2024, which marked the 17th consecutive quarter of earnings beat.
CROX also remains on track with its long-term strategy and key initiatives to deliver sustainable growth. For 2024, CROX anticipates revenue growth of 3-5% at constant currency from the year-ago levels, with a 7-9% increase in the Crocs brand revenues. Management anticipates gross margin to expand year over year during 2024, with gross margin growth across both the Crocs and HEYDUDE brands.
Crocs has an expected revenue and earnings growth rate of 4% and 6.8%, respectively, for the current year. The stock has seen positive earnings estimate revisions for the next quarter, current year and next year in the last 60 days.
CROX Stock Has Lucrative Price Appreciation Potential
The short-term average price target of brokerage firms for the stock represents an increase of 27.4% from the last closing price of $128.77. The brokerage target price is currently in the range of $146-$179.
Royal Caribbean Cruises Ltd.
Zacks Rank #1 Royal Caribbean Cruises posted impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. RCL has been benefiting from strong cruising demand from new and loyal guests and robust booking trends. Also, strength in consumer spending onboard and pre-cruise purchases bodes well.
RCL emphasized investing in a modern digital travel platform to streamline the vacation booking process for customers and expand wallet share. Moreover, RCL emphasized new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins.
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 18.1% and 71.1%, respectively, for the current year. The stock has seen positive earnings estimate revisions for the current quarter, current year and next year in the last 30 days.
Strong Price Upside Potential for RCL Stock
The short-term average price target of brokerage firms for the stock represents an increase of 12.5% from the last closing price of $167.96. The brokerage target price is currently in the range of $154-$210.
Norwegian Cruise Line Holdings Ltd.
Zacks Rank #1 Norwegian Cruise Line reported solid second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. NCLH is benefiting from strong demand, high pricing and increased booking volumes, leading to record advance ticket sales.
NCLH’s focus on fleet expansion efforts and digital initiatives bodes well. These factors showcase that the company’s strategy is well-aligned with its growth goals and 2026 financial and sustainability targets. Given the substantial progress made so far and current demand expectations, NCLH raised its 2024 full-year guidance.
Norwegian Cruise Line has an expected revenue and earnings growth rate of 9.8% and more than 100%, respectively, for the current year. The stock has seen positive earnings estimate revisions for the current quarter, next quarter, current year and next year in the last 60 days.
NCLH Stock Has Impressive Price Appreciation Potential
The short-term average price target of brokerage firms for the stock represents an increase of 18.7% from the last closing price of $19.33. The brokerage target price is currently in the range of $17.5-$32.
Paramount Global
Zacks Rank #1 Paramount Global operates as a media, streaming, and entertainment company worldwide. PARAA operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. PARAA’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount, Pluto TV and Simon & Schuster, among others.
Paramount Global has an expected earnings growth rate of more than 100% for the current year. Although its revenue growth rate is negative for the current year, it is 0.2% for next year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the last 60 days.
Solid Price Appreciation Potential for PARAA Shares
The short-term average price target of brokerage firms for the stock represents an increase of 15.2% from the last closing price of $21.96. The brokerage target price is currently in the range of $25-$25.
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.
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/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Sirius, Royal Caribbean Cruises, Norwegian Cruise Line, Paramount and Crocs
For Immediate Releases
Chicago, IL – September 17, 2024 – 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: Sirius XM Holdings Inc. (SIRI - Free Report) , Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , Paramount Global (PARAA - Free Report) and Crocs Inc. (CROX - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
Buy 5 Consumer Discretionary Stocks Ahead of Fed FOMC to Gain Big
Market participants across the world are eagerly waiting for the upcoming Fed FOMC meeting scheduled Sept. 17-18. At present, the financial investment community is extremely hopeful that a rate regime will be initiated in the September FOMC meeting for the first time after March 2020. The CME FedWatch tool currently shows a 100% probability of a 25-basis point cut along with a 50% possibility of a 50-basis point cut in September.
At this stage, investment in consumer discretionary stocks should be prudent to earn profits in the near term. Here we offer five consumer discretionary stocks — Sirius XM Holdings Inc., Royal Caribbean Cruises Ltd., Norwegian Cruise Line Holdings Ltd., Paramount Global and Crocs Inc.
These five stocks have seen positive earnings estimate revisions in the last 60 days and have handsome short-term price appreciation potential. Each of our picks carries either a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Why Consumer Discretionary Stocks?
The consumer discretionary sector is generally recognized as being growth-oriented. Growth sectors are highly sensitive to the movement of the market interest rate and are inversely related. Companies in this space need a cheap source of credit for businesses. Investors derive returns from these stocks’ investments over a period of time.
A low market interest rate regime will reduce the discount rate thereby increasing the net present value of investment in these stocks. On the other hand, the fundamentals of the U.S. economy remain solid.
The U.S. GDP grew at 1.4% in first-quarter 2024. The second reading of second-quarter GDP was 3%. On Sept. 9, the Atlanta Fed GDPNow projected a 2.5% GDP growth rate for the third quarter.
A recession means contraction of GDP (negative GDP growth rate) for two consecutive quarters. As the recession fear evaporates, the consumer discretionary sector is likely to perform well buoyed by strong personal consumption expenditures.
Buy 5 Consumer Discretionary Stocks Ahead of the Fed FOMC Meeting
Sirius XM Holdings Inc.
Zacks Rank #1 Sirius XM has been benefiting from an improvement in ad revenues, offset by a decline in Sirius XM Standalone’s paid promotional subscribers. SIRI continues to bolster its content offerings by adding content from all spheres, including music, politics, news and sports, to its platform. SIRI’s expanded podcast efforts fit well with the existing advertising-led focus at Pandora and AdsWizz and are expected to improve monetization in the near term.
Sirius XM has an expected revenue and earnings growth rate of 1.3% and 8.3%, respectively, for next year. The Zacks Consensus Estimate for the next-quarter, current-year and next-year earnings has improved over the last 60 days.
Huge Price Upside Potential for SIRI Shares
The short-term average price target of brokerage firms for the stock represents a jump of 45.2% from the last closing price of $24.51. The brokerage target price is currently in the range of $25-$65.
Crocs Inc.
Zacks Rank #2 Crocs has been benefiting from solid consumer demand for the Crocs brand, accompanied by effective pricing actions and lower freight costs. CROX has been experiencing strength in clogs, sandals and personalization for a while. Strong demand trends led to impressive results during second-quarter 2024, which marked the 17th consecutive quarter of earnings beat.
CROX also remains on track with its long-term strategy and key initiatives to deliver sustainable growth. For 2024, CROX anticipates revenue growth of 3-5% at constant currency from the year-ago levels, with a 7-9% increase in the Crocs brand revenues. Management anticipates gross margin to expand year over year during 2024, with gross margin growth across both the Crocs and HEYDUDE brands.
Crocs has an expected revenue and earnings growth rate of 4% and 6.8%, respectively, for the current year. The stock has seen positive earnings estimate revisions for the next quarter, current year and next year in the last 60 days.
CROX Stock Has Lucrative Price Appreciation Potential
The short-term average price target of brokerage firms for the stock represents an increase of 27.4% from the last closing price of $128.77. The brokerage target price is currently in the range of $146-$179.
Royal Caribbean Cruises Ltd.
Zacks Rank #1 Royal Caribbean Cruises posted impressive second-quarter 2024 results, with earnings and revenues beating the Zacks Consensus Estimate. RCL has been benefiting from strong cruising demand from new and loyal guests and robust booking trends. Also, strength in consumer spending onboard and pre-cruise purchases bodes well.
RCL emphasized investing in a modern digital travel platform to streamline the vacation booking process for customers and expand wallet share. Moreover, RCL emphasized new innovative ships and onboard experiences to boost its offering and deliver superior yields and margins.
Royal Caribbean Cruises has an expected revenue and earnings growth rate of 18.1% and 71.1%, respectively, for the current year. The stock has seen positive earnings estimate revisions for the current quarter, current year and next year in the last 30 days.
Strong Price Upside Potential for RCL Stock
The short-term average price target of brokerage firms for the stock represents an increase of 12.5% from the last closing price of $167.96. The brokerage target price is currently in the range of $154-$210.
Norwegian Cruise Line Holdings Ltd.
Zacks Rank #1 Norwegian Cruise Line reported solid second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate. NCLH is benefiting from strong demand, high pricing and increased booking volumes, leading to record advance ticket sales.
NCLH’s focus on fleet expansion efforts and digital initiatives bodes well. These factors showcase that the company’s strategy is well-aligned with its growth goals and 2026 financial and sustainability targets. Given the substantial progress made so far and current demand expectations, NCLH raised its 2024 full-year guidance.
Norwegian Cruise Line has an expected revenue and earnings growth rate of 9.8% and more than 100%, respectively, for the current year. The stock has seen positive earnings estimate revisions for the current quarter, next quarter, current year and next year in the last 60 days.
NCLH Stock Has Impressive Price Appreciation Potential
The short-term average price target of brokerage firms for the stock represents an increase of 18.7% from the last closing price of $19.33. The brokerage target price is currently in the range of $17.5-$32.
Paramount Global
Zacks Rank #1 Paramount Global operates as a media, streaming, and entertainment company worldwide. PARAA operates through TV Media, Direct-to-Consumer, and Filmed Entertainment segments. PARAA’s portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount, Pluto TV and Simon & Schuster, among others.
Paramount Global has an expected earnings growth rate of more than 100% for the current year. Although its revenue growth rate is negative for the current year, it is 0.2% for next year. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year and next-year earnings has improved over the last 60 days.
Solid Price Appreciation Potential for PARAA Shares
The short-term average price target of brokerage firms for the stock represents an increase of 15.2% from the last closing price of $21.96. The brokerage target price is currently in the range of $25-$25.
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 >>
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Zacks Investment Research
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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/performance for information about the performance numbers displayed in this press release.