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The Zacks Analyst Blog Highlights: Deckers Outdoor, G-III Apparel, Malibu Boats, Ralph Lauren and American Woodmark
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For Immediate Release
Chicago, IL – February 19, 2020 – 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: Deckers Outdoor Corp. (DECK - Free Report) , G-III Apparel Group, Ltd. (GIII - Free Report) , Malibu Boats, Inc. (MBUU - Free Report) , Ralph Lauren Corp. (RL - Free Report) and American Woodmark Corp. (AMWD - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Big Winners After Two Years of ‘Tax Cuts and Jobs’ Act
Although it’s been almost two years since the implementation of the Tax Cuts and Jobs Act (TCJA), most of the upper household income folks are of the opinion that they haven’t got a tax cut yet. Notably, per the New York Times survey and the Tax Policy Center, 89.5% of upper-income folks actually got a tax cut in 2018. However, the survey found out that only 46.4% of Americans believed that they had actually received a tax cut under the TCJA. This is primarily because many of them in reality paid lower taxes for the year, and hence, received lower-than-expected refunds after filing their returns. Naturally, lower-than-expected refunds felt like tax increase particularly for those who depend largely on tax refunds for an annual bonus.
Despite the perception, the TCJA has surely resulted in a lot of winners. Since the TCJA significantly reduced individual tax rates, tax-payers especially in the higher income group reaped the biggest tax savings, which in turn led to increase in real disposable income. In fact, real disposable income per household increased on an average $5000 since the TCJA became law. The TCJA, by the way, trimmed the corporate tax rate from 35% to 21%, helping corporates increase wages for their workers over the last couple of years, and also led to job creation.
The Federal Reserve Bank of Atlanta confirmed that the lowest paid workers currently have higher median wage growth compared to others over the last couple of years. Meanwhile, the US economy to date has added nearly 6 million jobs since January of 2017, and unemployment continues to hover at a 50-year low.
So, what does this mean for the stocks? Increase in disposable income, rise in wages and more jobs will certainly boost consumer discretionary stocks. In fact, the Consumer Discretionary Select Sector SPDR Fund (XLY) soared more than 20% over the past two-year. Additionally, with Americans being confident about their economic well-being, the momentum will continue.
Per the University of Michigan, the preliminary consumer sentiment reading for February came in at 100.9 from 99.8 last month. This shows how optimistic Americans are regarding their finances and the domestic economy nearly 11 years after the last recession. In fact, consumers agreed that they have been witnessing the best growth in wealth compared to any time since 1960. Needless to say, that improved consumer confidence will result in an uptick in purchase of discretionary items.
Top 5 Winners
Since the consumer discretionary sector is poised to gain, picking stocks from the same will be a smart move. We have, thus, selected five consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Deckers Outdoor Corp.designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities. The company, currently, carries a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings improved 5.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.9%.
G-III Apparel Group, Ltd.designs, sources, and markets women's and men's apparel. The company, currently, sports a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings increased 0.3% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year are 23.6% and 9.4%, respectively.
Malibu Boats, Inc.designs, manufactures, distributes, markets, and sells recreational powerboats. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 4.3% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year are 10.2% and 9.6%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ralph Lauren Corp.designs, markets, and distributes lifestyle products. The company, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings increased 5.5% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year are 9.6% and 12.8%, respectively.
American Woodmark Corp.manufactures and distributes kitchen, bath, and home organization products for the remodeling and new home construction markets. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 2% over the past 90 days. The company’s expected earnings growth rate for the next quarter and current year are 13.9% and 8.5%, respectively.
Shares of Deckers Outdoor, G-III Apparel, Malibu Boats, Ralph Lauren and American Woodmark have gained 470.2%, 167.5%, 180.9%, 51.2% and 506.8%, respectively, over the past decade.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Deckers Outdoor, G-III Apparel, Malibu Boats, Ralph Lauren and American Woodmark
For Immediate Release
Chicago, IL – February 19, 2020 – 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: Deckers Outdoor Corp. (DECK - Free Report) , G-III Apparel Group, Ltd. (GIII - Free Report) , Malibu Boats, Inc. (MBUU - Free Report) , Ralph Lauren Corp. (RL - Free Report) and American Woodmark Corp. (AMWD - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Big Winners After Two Years of ‘Tax Cuts and Jobs’ Act
Although it’s been almost two years since the implementation of the Tax Cuts and Jobs Act (TCJA), most of the upper household income folks are of the opinion that they haven’t got a tax cut yet. Notably, per the New York Times survey and the Tax Policy Center, 89.5% of upper-income folks actually got a tax cut in 2018. However, the survey found out that only 46.4% of Americans believed that they had actually received a tax cut under the TCJA. This is primarily because many of them in reality paid lower taxes for the year, and hence, received lower-than-expected refunds after filing their returns. Naturally, lower-than-expected refunds felt like tax increase particularly for those who depend largely on tax refunds for an annual bonus.
Despite the perception, the TCJA has surely resulted in a lot of winners. Since the TCJA significantly reduced individual tax rates, tax-payers especially in the higher income group reaped the biggest tax savings, which in turn led to increase in real disposable income. In fact, real disposable income per household increased on an average $5000 since the TCJA became law. The TCJA, by the way, trimmed the corporate tax rate from 35% to 21%, helping corporates increase wages for their workers over the last couple of years, and also led to job creation.
The Federal Reserve Bank of Atlanta confirmed that the lowest paid workers currently have higher median wage growth compared to others over the last couple of years. Meanwhile, the US economy to date has added nearly 6 million jobs since January of 2017, and unemployment continues to hover at a 50-year low.
So, what does this mean for the stocks? Increase in disposable income, rise in wages and more jobs will certainly boost consumer discretionary stocks. In fact, the Consumer Discretionary Select Sector SPDR Fund (XLY) soared more than 20% over the past two-year. Additionally, with Americans being confident about their economic well-being, the momentum will continue.
Per the University of Michigan, the preliminary consumer sentiment reading for February came in at 100.9 from 99.8 last month. This shows how optimistic Americans are regarding their finances and the domestic economy nearly 11 years after the last recession. In fact, consumers agreed that they have been witnessing the best growth in wealth compared to any time since 1960. Needless to say, that improved consumer confidence will result in an uptick in purchase of discretionary items.
Top 5 Winners
Since the consumer discretionary sector is poised to gain, picking stocks from the same will be a smart move. We have, thus, selected five consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Deckers Outdoor Corp.designs, markets, and distributes footwear, apparel, and accessories for casual lifestyle use and high-performance activities. The company, currently, carries a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings improved 5.2% over the past 60 days. The company’s expected earnings growth rate for the current year is 7.9%.
G-III Apparel Group, Ltd.designs, sources, and markets women's and men's apparel. The company, currently, sports a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings increased 0.3% over the past 60 days. The company’s expected earnings growth rate for the current quarter and year are 23.6% and 9.4%, respectively.
Malibu Boats, Inc.designs, manufactures, distributes, markets, and sells recreational powerboats. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 4.3% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year are 10.2% and 9.6%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ralph Lauren Corp.designs, markets, and distributes lifestyle products. The company, currently, has a Zacks Rank #1. The Zacks Consensus Estimate for its current year earnings increased 5.5% over the past 60 days. The company’s expected earnings growth rate for the next quarter and current year are 9.6% and 12.8%, respectively.
American Woodmark Corp.manufactures and distributes kitchen, bath, and home organization products for the remodeling and new home construction markets. The company, currently, has a Zacks Rank #2. The Zacks Consensus Estimate for its current year earnings increased 2% over the past 90 days. The company’s expected earnings growth rate for the next quarter and current year are 13.9% and 8.5%, respectively.
Shares of Deckers Outdoor, G-III Apparel, Malibu Boats, Ralph Lauren and American Woodmark have gained 470.2%, 167.5%, 180.9%, 51.2% and 506.8%, respectively, over the past decade.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.