4 Leisure Stocks Poised To Beat Earnings Estimates In Q4

How to Make the Right Pick?

Based on the above-mentioned positives, it would be a good idea to add leisure stocks with the potential of reporting better-than-expected earnings in fourth-quarter 2018 to one’s portfolio.

Nonetheless, given the wide range of companies in this space, the task is by no means easy. While it is impossible to be sure of the outperformers, our proprietary methodology — a positive Earnings ESP along with a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — makes it relatively simple. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP is our proprietary methodology for identifying stocks that have high chances of surprising in their upcoming earnings announcement. It shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that for stocks with this combination, the chance of a positive earnings surprise is as high as 70%.

Our Choices

Here are a few leisure companies that might interest investors.

Royal Caribbean Cruises Ltd. (RCL - Free Report) is likely to report fourth-quarter 2018 results on Jan 23. Apart from carrying a Zacks Rank #3, the company has an Earnings ESP of +1.41% that increases our predictive power for a beat this quarter. Moreover, the consensus estimate for earnings is pegged at $1.51, projecting 12.7% growth from the year-ago level. In the trailing four quarters, the company’s earnings have surpassed the consensus mark by an average of 10.2%.

Royal Caribbean Cruises Ltd. Price and EPS Surprise

Royal Caribbean Cruises Ltd. Price and EPS Surprise | Royal Caribbean Cruises Ltd. Quote

Brunswick Corporation (BC - Free Report) has an Earnings ESP of +3.72% and a Zacks Rank #3, indicating a likely earnings beat in the fourth quarter of 2018. Also, earnings estimate for the quarter is pegged at 90 cents, mirroring 28.6% year-over-year growth. In two of the preceding three quarters, the company outshined bottom-line expectations, the average beat being 3.6%. Brunswick is scheduled to release its quarterly numbers on Jan 31.

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this ...

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