WHats can vary by a year. Now that most of the epidemic-related restrictions have been lifted across the country, investors are considering using the shares that could benefit the economy. While most ‘house-to-house’ names have proliferated over the past year, the beginning of a return to normalcy has been linked to a declining industry last year.
Jim was definitely one of the most affected businesses in 2020, and it’s easy to understand why. Gyms were forced to terminate at no cost to the user, and their monthly income was lost overnight.
Social unrest and other restrictions have zero access to sports in the gym for up to four months in most states. And when the gym was allowed to reopen, many members were very skeptical. A survey by Statista Global Consumers shows that 46% of respondents were not comfortable returning to the gym by the end of 2020.
Such people have changed to exercise at home, which has given rise to popular names such as Peloton Peton And Nautilus NLS A.D. Reached the peak in 2020. Last year everyone seemed to be buying a spinner for the comfort of their own home (I know one of them ended up in me). Although both Peloton and Nautilus 2020 stars, these ‘stay-at-home’ names have changed course this year and are becoming more and more traditional on the planet.
Image source: Zacks Investment study
Every fitness ad says the industry has changed forever over the past year. But just as many major cities have seen the numbers scream back after the initial panic, so do the gym members. This is an industry that has truly completed its journey.
People go back to the gym. And while it may be convenient for you to exercise in your own home, gymnasiums and equipment are not easily available – not to mention pools, spas and other facilities. Luxury items.
Let’s look at three stocks that will benefit from the next economic reopening.
One might argue that Lululemon created a unique place in exercise. Last year, LULU acquired a mirror of the in-house fitness machine, based on Brinth Putin. And during most of his marketing talks with Mirror, the company has been building loyal followers for years on athletic clothing and yoga-related products.
There is no doubt that the return to the gym by working on the Zacks # 2 purchase level is an incentive for LULU’s core business. The company has seen a resurgence in the sale of bricks and mortar due to increased store traffic as consumers become more comfortable shopping in the store. Traffic in the second quarter increased by more than 150% compared to the previous year. LULU most recently reported an EPS increase of $ 1.65 in September, an impressive 36% of consensus and a 123 percent increase over the same quarter of 2020.
Lululemon Athletics Inc. Price, Agreement and EPS Surprise
The company is part of the textile industry in the consumer diversity sector. The industry currently ranks 66th in the Zacks industry, accounting for 26% of all 253 industries.
LULU’s next revenue report is scheduled for December 9thWe. The management is doing well and has expanded its budget for 2021 earlier this year. LULU’s current full-year XX deal estimates are expected to earn $ 7.51 per share, representing a + 60% year-over-year change.
The company’s strong financial base and strong business acumen should serve well into the next year.
Dix Sports EquipmentDKS)
Currently ranked Zacks # 3, the DKS collection was in tears this year. It has grown by more than 160% and is showing no signs of abating. The company ranks high in terms of EPS surprises. In each of the last three quarters, DKS averaged more than 118% EPS estimates. Most recent earnings in August were $ 5.08 per share, up 58% from the previous quarter and a staggering 81% compared to the $ 2.80 deal.
Dick Sports Equipment, Inc. Price, Agreement and EPS Surprise
Retail has increased the demand for sports equipment in the economy, which has led to the purchase of athletic shoes, clothing and other consumer goods. Solid Q2 results increased by 21% net sales annually and double-digit sales growth in the main categories – Hardline, Clothing and Shoes.
DKS management revised its budget for 2021 earlier this year. Sales of the same store could grow by 18-20 percent, 8-11 percent higher than before. Adjusted earnings are expected to be in the $ 12.45- $ 12.95 range, significantly higher than previously expected $ 8- $ 8.70.
The company is part of the Retail-Variety Industry Group, which ranks 106 out of 253 industries, accounting for 42%.
The current year-over-year deal for Zack is set at $ 12.91, an increase of about 111% year-over-year. DKS will report quarterly earnings next Tuesday, November 23rdrd. Consensus estimate has improved by 3.3% over the last 30 days.
What the Zacks model shows
The Zacks model predicts DKS revenue victory for the upcoming revenue announcement. The combination of Positive Earnings ESP (Amazing Forecast) and Zack Level # 1 (Strong Buy), # 2 (Buy) or # 3 (Hold) increase your chances of hitting revenue. Revenue ESP seeks to acquire companies with a recent positive revenue estimate. DKS currently has an ESP of + 27.97%.
Lifetime Group HoldingsLTH)
Life Time, Zacks # 3 Hold, is currently the leading lifestyle provider of premium fitness, safety and health experiences for over 1.4 million members. The company was founded over 30 years ago and is headquartered in Chanhasen, Minnesota. Life Time operates more than 150 fitness centers in 29 states and across Canada.
Before the outbreak, the company It earned $ 1.9 billion in 2019, with $ 438 million and $ 30 million in net revenues. A.D. With the Covend-related collapse expected in 2020, the LTH is expected to be strongly renewed by 2021. The company has also invested in a number of profitable partnerships, including an agreement with Apple to provide Apple Fitness + to its members.
LTH recently experienced the IPO in early October. The company has seen its Q3 earnings rise from 66.7% to $ 385 million since then and its relative median sales to 58.7%. As a result, about 20% of LTH centers are still experiencing epidemic-related restrictions during the quarter. The stock is currently about 10% of its original $ 18 IPO price.
Life Time Group Holdings, Inc. Price, Agreement and EPS Surprise
On a personal note, I have been a member for many years of my life and have always been impressed by their service. Having visited many well-known gyms, I can definitely say that LTH Luxury Fitness Centers are some of the best in the business. The company’s handling of the epidemic and its practices related to social neglect, hygiene and safety were paramount.
The staff do an incredible job and I can say that this is a well run company. It will be interesting to see how the collection works in the future. LTH is scheduled to report revenue on January 27We, 2022.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.