This week, I'm looking for the fifth consumer cyclical representative of five for my Ivy portfolio.

The consumer cyclical sector includes twenty-eight industries ranging from Advertising Agencies to Apparel, Autos, Broadcasting, Department Stores, Gambling, Leisure, Lodging, Packaging, Personal Services, Shoes, Restaurants, Rubber, Plastics, Textiles, and all such consumer aimed enterprises.

Today I'm reviewing that mid-cap lodging outfit named Extended Stay America Inc. Its trading ticker symbol is STAY. I last reviewed this company in March and selected it as my fourth pick as a consumer cyclical representative in my Ivy portfolio.

Extended Stay America Inc owns and operates company-branded hotels in North America. Its business operates in the extended stay lodging industry. It operates hotels under brand names Extended Stay America, Extended Stay Canada, and Crossland Economy Studios.

As of February 27, 2019, the company had a network of 627 hotels. It serves customers in the mid-priced extended stay segment.

The company also relicenses Extended Stay America brand to third party franchisees. Extended Stay America, Inc. was founded in 1995 and is headquartered in Charlotte, North Carolina.

I use three key data points to gauge the value of any dividend equity-like Extended Stay America Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

Those first three primary keys, however, best tell whether a company has made, is making, and will make money.

STAY Price

Extended Stay's price per share closed at $18.21 yesterday. A year ago its price was $19.83. Price fell $1.62 or almost 8.2% in the past year.

Assuming Extended Stay's stock trades in the range of 16.00 to $2.00 this year,

Extended Stay's recent $18.21 price could rise by $2.79 and go to $21.00 by mid- March 2020. That's the target I set two months ago

STAY Dividends

Extended Stay's most recently declared quarterly dividend was $0.23 declared May 1st and paid, May 30th.

That $0.23 Q dividend equates to an annual payout of $0.92 for a yield of 5.00% at yesterday's $18.21 closing price.

Gains For STAY?

Adding a $0.92 annual estimated dividend to my $2.79 estimate of Extended Stay's price upside shows a $3.71 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we pay a little over $1,000.00 today at the $18.21 recent stock price would buy us 55 Extended Stay America Inc (STAY) shares.

A $10 broker fee paid half at purchase and half at sale will cost us $0.18 per share.

Subtract that $0.18 brokerage cost from the estimated $3.71 gross annual gain leaves a net gain of $3.53 X 55 shares = $194.15 or a 19.4% net gain on a $1,001.55 investment.

Therefore, Extended Stay America Inc whose trading ticker symbol is STAY, now shows a possible net gain of 19.4% including a 5% dividend yield.

Twelve brokers cover Extended Stay America Inc stock:

Five say "buy" STAY.

Five say STAY will "outperform".

Two say "hold" STAY.

The consensus score is 1.75 or "outperform".

Therefore, you can look at Extended Stay America Inc and see it has made money, is making money, and could net a 19.4% gain including a 5% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Extended Stay America Inc is worth your time and money.