Zacks Industry Outlook Highlights Royal Caribbean Cruises, Manchester United and Bluegreen Vacations Holding

For Immediate Release

Chicago, IL – July 5, 2023 – Today, Zacks Equity Research discusses Royal Caribbean Cruises Ltd. RCL, Manchester United plc MANU and Bluegreen Vacations Holding Corp. BVH.

Industry: Leisure & Recreation Services

Link: https://www.zacks.com/commentary/2115941/3-stocks-to-buy-from-the-promising-leisure-recreation-services-industry

The Zacks Leisure and Recreation Services industry is benefiting from the optimization of business processes, consistent strategic partnerships and digital initiatives. The robust demand for concerts, improving bookings for cruise operators and higher per capita spending at theme parks are supporting the industry. Industry players like Royal Caribbean Cruises Ltd., Manchester United plc and Bluegreen Vacations Holding Corp. are likely to gain in their respective fields owing to the factors mentioned above. However, the industry has been bearing the brunt of high costs and a slow U.S. economy.

Industry Description

The Zacks Leisure and Recreation Services industry comprises a wide range of recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue business, theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts.

Many companies are engaged in hospitality and related businesses. A few of the industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, which is highly dependent on business cycles, is driven by a healthy labor market, rising wages and a growing disposable income.

3 Trends Shaping the Leisure & Recreation Services Industry’s Future

Robust Demand Aid Cruise Operators: The cruise industry is benefiting from strong demand for cruising, accelerating booking volumes and the relaxation in COVID-related protocols. However, the closure of cruise operations in China is hurting the industry. The cruise operators‘ operations are likely to be influenced by

Read the rest

Here’s Why Investors Should Retain Marriott Vacations (VAC) Now

Marriott Vacations Worldwide Corporation VAC is likely to benefit from solid contract sales, digital initiatives and vacation ownership business. This and its focus on owner benefit and exchange program bode well. However, increased expenses are a concern.

Let’s discuss the factors that highlight why investors should retain the stock for the time being.

Factors Driving Growth

Marriott Vacations continues to witness robust recovery during first-quarter 2023. While occupancies and tours are witnessing growth in the first quarter, VPGs remain well above 2019 levels. The company reported benefits from its development and rental businesses. VAC reported contract sales of $434 million in the first quarter of 2023, up 10% from $394 million reported in the prior-year quarter. Given the rise in tours and strength in vacation ownership products, VAC anticipates contract sales to grow in the range of 5-9% (year over year) in 2023.

Marriott Vacations emphasizes on increasing the use of digital tools to strengthen its infrastructure, grow online package sales, enable self-service bookings, make real-time offerings to enhance the overall customer experience and drive back-office efficiencies. Management is optimistic about integrating further data analytics into its marketing strategy. Also, it emphasizes on implementing an online booking engine (for previews) and improving predictive modeling (for marketing campaigns) to drive growth.

Marriott Vacations focuses on high vacation ownership business to drive growth. In April 2022, the company rebranded Welk’s points program as the Hyatt Vacation Club Platinum program and allowed the conversion of Welk sales centers to sell Hyatt-branded vacation ownership products. The Platinum program includes expanded vacation benefits and access to a collection of upscale resorts. In 2023, the company intends to rebrand all legacy Welk Resorts into Hyatt Vacation Club. Also, it stated plans to expand its vacation offerings with the launch of the Beyond program.

Increased

Read the rest

4 Solid Stocks to Buy on Improving Consumer Sentiment

U.S. consumer sentiment has been improving as recent data has indicated easing inflation over the past three months. Soaring inflation has compelled people to spend cautiously and the Fed’s aggressive rate hike policy has been igniting fears of a recession.

However, the apprehensions have been waning lately, with commodity prices showing signs of cooling, which has been giving a boost to consumer sentiment. Given this scenario, stocks like InterContinental Hotels Group PLC IHG, Sportradar Group AG SRAD, OneSpaWorld Holdings Limited OSW and Six Flags Entertainment Corporation SIX are likely to benefit in the near term.

Consumer Sentiment Rebounding

The University of Michigan’s preliminary February reading of the consumer sentiment index increased to 66.4 from January’s reading of 64.9. This is the index’s highest reading since January 2022.

January’s consumer sentiment reading also came in higher than economists’ expectations of 65.0.

The index measuring current economic conditions also increased to 72.6 in February from 68.4 in January, indicating a significant improvement in consumers’ views of the state of the economy.

Understandably, consumers are more optimistic about the economy right now. The consumer sentiment index hit a low of 50.0 in June 2022 and has since rebounded substantially. Colling commodity prices have brought in a sigh of relief for consumers. Also, data shows that inflation has been easing over the past three months.

The rally in the stock market and the ongoing strength of the labor market may have spurred the improvement in consumer sentiment. This has raised hopes that the economy may have a softer landing in 2023 and ultimately avoid slipping into recession.

Also, the U.S. GDP grew 2.9% in the fourth quarter for the second consecutive quarter. Besides, the Fed increased interest rates by 25 basis points in February after increasing them by 50 basis points in December.

Read the rest