Industry Overview - The Leisure and Recreation Services industry is experiencing growth due to optimized business processes, consistent partnerships, and digital initiatives [1] - Strong demand for concerts, easing trade tensions, and robust bookings for cruise operators are supporting the industry [1][2] Cruise Industry - The cruise industry is benefiting from strong demand and increasing booking volumes, with solid pricing and onboard spending contributing positively [3] - Carnival Corporation & plc (CCL) is raising its full-year 2025 guidance due to sustained demand strength and operational efficiency [5][6] - CCL has an expected revenue growth rate of 5.4% and earnings growth rate of 38% for the current year [6] Theme Park Industry - The theme park industry is also seeing robust demand, with operators benefiting from improved visitation [3] Company Highlights - **Carnival Corporation & plc (CCL)**: Zacks Rank 2, benefiting from increased booking volumes and onboard revenues, with a P/E ratio of 15.1X compared to the industry average of 21.7X [5][7] - **Manchester United plc (MANU)**: Zacks Rank 1, expected revenue growth of 9.6% and earnings growth of 56.6% for the current year, with a potential upside of 50.1% from current brokerage targets [10][12][13] - **The Marcus Corporation (MCS)**: Zacks Rank 2, engaged in lodging and entertainment, with expected revenue growth of 5.2% and earnings growth of over 100% for the current year [14][15] - **Madison Square Garden Sports Corp. (MSGS)**: Zacks Rank 2, expected revenue growth of 6.5% and earnings growth of over 100% for the current year, with a potential price target increase of 24.8% [18][20] - **Pursuit Attractions and Hospitality Inc. (PRSU)**: Zacks Rank 1, expected revenue growth of 6.2% and earnings growth of 11% for the next year, with a potential price target increase of 44.4% [22][23][24]

Core Viewpoint - The current stock market cycle is heavily influenced by the popularity of artificial intelligence and semiconductor sectors, while the retail sector, particularly On Holding, presents significant investment opportunities due to its recent performance and growth potential [2][10]. Group 1: Market Performance - The SPDR S&P Retail ETF (XRT) has experienced a rally of up to 24% over the past quarter, indicating bullish momentum in the retail sector [2]. - On Holding's stock trades at approximately 85% of its 52-week high, while competitors like Lululemon and Nike are at 59% and 82% of their respective highs [5][6]. Group 2: Company Comparison - On Holding has a market capitalization of $17.1 billion, significantly smaller than Nike's $112 billion, which offers a better risk-to-reward ratio for growth potential [6]. - On Holding's price-to-book (P/B) ratio is at 20.0x, compared to Nike's 8.0x, suggesting that the market is willing to pay a premium for expected outperformance [8]. Group 3: Financial Performance - On Holding reported a 43% annual growth in revenue, attributed to its increasing market share [10]. - The company's gross profit margin reached 59.9%, one of the highest in the industry, with its wholesale division contributing 38.1% to net revenue [12]. - Despite a reported net loss due to currency exchange rates, On Holding would have delivered a significant earnings beat on an adjusted basis, leading to a positive market reaction [13][14].

Xponential Fitness (XPOF) shares soared 35.4% in the last trading session to close at $10.1. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 22% loss over the past four weeks.Shares of Xponential Fitness are likely to have gained following the end of the SEC probe, which concluded with no enforcement action. The investigation, which began in December 2023, had raised concerns over potential securities fraud and accounting issues. ...

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Consumer sentiment toward the economy and household finances has stabilized amid ongoing tariff concerns, with inflation remaining the primary concern for consumers [1][7] - The report indicates a slight decline in consumer confidence regarding the economic outlook, with 37% expecting improvement and 47% anticipating deterioration, resulting in a NET score of -10% [7][61] - Concerns over tariffs remain elevated but stable, with 39% of consumers very concerned, down from 43% in April [7][14] - The spending outlook remains stable, with 32% of consumers planning to spend more in the next month, yielding a NET of +15% [19][84] - Travel intentions are strong, with approximately 60% of consumers planning to travel in the next six months, reflecting optimism in leisure travel [117] Consumer Sentiment - Inflation is the top concern for consumers at 57%, down from 59% last month, while political concerns have risen to 43% [8][37] - Geopolitical conflict concerns increased to 31% this month from 21% last month [7][8] - Low-income consumers are more worried about paying rent/mortgage and debts, while upper-income consumers focus on investment concerns [9][42] Macro Outlook - Consumer confidence in the U.S. economy is slightly down, with 37% expecting improvement and 47% expecting deterioration, leading to a NET score of -10% [61][71] - The outlook for household finances remains positive, with 43% expecting improvement and a NET score of +16% [64][70] Tariff Impact - 39% of consumers report being very concerned about tariffs, with 33% planning to cut back on spending in response [14][19] - The level of concern about tariffs varies significantly by political affiliation, with 63% of liberals very concerned compared to 23% of conservatives [14][50] Spending Intentions - The short-term spending outlook is stable, with 32% of consumers expecting to spend more next month, yielding a NET of +15% [84][88] - 30% of consumers reported making a major purchase in the past three months, with 58% planning a major purchase in the next three months [97][98] Travel Intentions - Approximately 60% of consumers plan to travel in the next six months, with visiting friends and family being the most common reason [117][119]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: OneSpaWorld (OSW) - OneSpaWorld currently holds a Momentum Style Score of B and a Zacks Rank of 2 (Buy) [2][3] - The stock has shown strong performance, with a 4.98% increase over the past week, compared to a 2.69% increase in the Zacks Leisure and Recreation Services industry [5] - Over the last month, OSW shares have risen by 8.19%, outperforming the industry's 4.39% [5] - In the last three months, OSW shares have increased by 38.27%, and by 33.63% over the past year, while the S&P 500 has only moved 10.42% and 14.64%, respectively [6] Trading Volume - OSW's average 20-day trading volume is 571,121 shares, which serves as a price-to-volume baseline for assessing stock momentum [7] Earnings Outlook - Over the past two months, two earnings estimates for OSW have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $0.97 to $0.99 [9] - For the next fiscal year, two estimates have also moved upwards without any downward revisions [9] Conclusion - Given the positive momentum indicators and earnings outlook, OSW is positioned as a promising investment opportunity with a Momentum Score of B [11]

The US is arguably never more dependent on China than on July 4, when the nation celebrates its rebellion against British rule with fireworks that are inevitably imported from China https://t.co/HidO2mjBVO ...

The leisure travel industry is expected to triple to $15 trillion by 2040, according to a new report https://t.co/zuiDQVeTnt ...

Macau Gaming Revenue Resurgence - Macau's gambling sector is experiencing a post-pandemic recovery, with June gross gaming revenue showing a 19% year-over-year improvement [1] - June gambling revenue reached $26 billion [2] - Gaming revenue jump may be a result of promotional spending [3] - Macau has not yet returned to pre-pandemic levels, making future earnings reports crucial for insight [4] Stock Market Impact - Casino stocks with Macau exposure are rising, including Wind (up 8%), Las Vegas Sands (up 8%), Melco (up 11%), and MGM Resorts (up 6%) [2] - Melco has seen gains of 52% over the last 3 months [3] Diversification Efforts - Macau is attempting to diversify its economy beyond gambling, focusing on shows and events like NBA exhibition games [5][6] - The success of attracting non-gambling spending is yet to be determined [6] Economic Factors - The Chinese macro backdrop remains a key consideration for Macau casinos [4] - There can be a divergence between the Chinese economy and gambling activity in Macau, as it is fueled by serious gamblers [5]

Group 1 - Lincoln Educational Services Corporation (LINC) is part of the Consumer Discretionary group, which consists of 256 companies and currently ranks 10 in the Zacks Sector Rank [2] - LINC has a Zacks Rank of 2 (Buy), indicating a positive outlook, with the consensus estimate for its full-year earnings increasing by 5.9% over the past quarter [3] - Year-to-date, LINC has achieved a return of approximately 45.7%, significantly outperforming the average gain of 11.7% for the Consumer Discretionary sector [4] Group 2 - LINC belongs to the Schools industry, which includes 18 stocks and is currently ranked 11 in the Zacks Industry Rank, with an average gain of 9.2% this year [5] - In comparison, another stock in the Consumer Discretionary sector, Carnival (CCL), has a year-to-date return of 12.8% and is part of the Leisure and Recreation Services industry, which is ranked 79 and has gained 4.4% year to date [4][6]

Company Performance - In the latest trading session, Airbnb, Inc. (ABNB) was down 1.62% at $132.34, underperforming the S&P 500 which gained 0.52% [1] - Over the previous month, shares of Airbnb gained 4.28%, trailing the Consumer Discretionary sector's gain of 5.55% and slightly outperforming the S&P 500's gain of 4.27% [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $0.92, reflecting a 6.98% increase from the prior-year quarter [2] - The Zacks Consensus Estimate projects net sales of $3.02 billion, up 9.98% from the year-ago period [2] - For the full year, earnings are projected at $4.18 per share and revenue at $12.02 billion, indicating changes of +1.7% and +8.29% respectively from the preceding year [2] Analyst Estimates - Recent modifications to analyst estimates indicate a positive outlook for Airbnb's business operations and profit generation [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [4] Zacks Rank and Valuation - Airbnb currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate moving 0.02% higher over the last 30 days [5] - The company has a Forward P/E ratio of 32.21, which is a premium compared to the industry average Forward P/E of 20.36 [6] - The PEG ratio for Airbnb is 2.52, compared to the Leisure and Recreation Services industry's average PEG ratio of 1.84 [6] Industry Context - The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, has a Zacks Industry Rank of 58, placing it in the top 24% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]