3 Consumer Centric Stocks to Buy as Earnings Approach
The consumer staples and discretionary sectors highlight several top-rated Zacks stocks set to release quarterly results this week.
Let’s take a look at three of these consumer-centric stocks that will be reproting their quarterly earnings on Tuesday, August 1.
Molson Coors (TAP)
Starting out is Molson Coors which stock currently covets a Zacks Rank #1 (Strong Buy). Molson may be able to quench investors' thirst for stocks with more upside as earnings estimates are noticeably higher.
Strong quarterly growth is expected for the global beer manufacturer with popular brands including Blue Moon, Miller Life, Coors Light, and Miller Genuine Draft. Molson’s second-quarter earnings are expected to soar 33% to $1.59 per share compared to $1.19 a share in the prior-year quarter. On the top line, Q2 sales are forecasted to be up 12% to $3.29 billion.
Even better, annual earnings are now projected to jump 16% this year and rise another 2% in fiscal 2024 at $4.86 per share. Earnings estimates have continued to trend higher over the last quarter and the cherry on top may be Molson’s 2.32% dividend yield in a space where many stocks don’t offer a payout to shareholders.
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Marriott International (MAR)
Higher travel demand has continued to boost hotel chain operators and Marriott International's stock has a Zacks Rank #2 (Buy). The hospitality leaders' Q2 earnings are expected to climb 21% YoY to $2.19 per share. Sales for the quarter are anticipated at $6.05 billion, up 13% from a year ago.
Annual earnings are now expected to soar 26% this year and rise another 8% in FY24 at $9.14 per share. Earnings estimates have remained higher and Marriott has a modest 1.05% dividend yield to further compel its strengthening outlook.
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Electronic Arts (EA)
Lastly, Electronic Arts stock is appealing heading into its fiscal first-quarter earnings report tomorrow and sports a Zacks Rank #2 (Buy). The leading interactive entertainment and gaming company is expecting stellar quarterly growth.
To that point, Electronic Arts’ Q1 earnings are expected to skyrocket 215% to $1.01 per share compared to EPS of $0.32 a year ago. First-quarter sales are projected to climb 22% YoY to $1.59 billion.
Regaining the mojo it received from higher gaming during the pandemic, Electronic Arts’ annual earnings are anticipated to climb 25% in its current FY24 and rise another 10% in FY25 at $7.54 per share. Earnings estimates are modestly higher and Electronic Arts offers a 0.55% dividend yield in an industry that is focused on growth and rarely offers a payout.
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Bottom Line
These consumer-centric companies are expected to have posted strong quarterly growth and now may be a good time to buy their stocks for a strengthening outlook. Plus, Molson Coors, Marriott International, and Electronic Arts are leaders in their respective industries and should remain viable investments for 2023 and beyond.
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Marriott International, Inc. (MAR) : Free Stock Analysis Report
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Electronic Arts Inc. (EA) : Free Stock Analysis Report
