in our last Number Cruncher we discussed how Asbury Automotive Group, Inc (ABG). , Hilton Worldwide Holdings (HLT) & Casey’s General Stores Inc (CASY) could be excellent candidates if you want to look for Consumer Discretionary stocks that have room to increase their profitability.
Here is the screener we used to find these stocks and that you can add to your personalized screeners.
Let’s start with ABG
The company has a healthy SP score of 72 with a 90 days decrease of 4. The SP score is derived from the high performance (70.8) and risk score (23.2) . The company has a high exposure to value (75) and quality (72). Sales increased by a whopping 49.8% year-over-year basis and increased by an annualized 16.8 per cent over 5 years. Earnings per share followed a similar trend, but even more solid with a 90.1% annualized increase in earnings per share and a 52.8% annualized increase on a 5-year horizon.
Despite not having the best growth score, compared to peers in its sector, it does relatively well. Overall, the company has the second highest growth score compared to its peers.
Let’s continue with HLT
The company has a score of 63 with a solid increase of 9 points in the last 90 days. The SP score is derived from the performance (63.8) and risk (36.7) score. The company has a momentum and volatility bias with a score of 70 and 67 respectively. The company reported vigorous year-over-year sales growth of 102.5 percent due to the relaxation of sanitary measures.
HLT was hit hard by the COVID. Its EPS fell from $4 to approximately -$3, but we see that the company has a powerful rebound in its profitability. The share price declined recently and so it could be a potential entry point for buyers.
CASY has a score of 66 in our system with a 1 point increase in the last 90 days. The SP score is derived from the performance (72.4) and risk (35.8) score. The company has a quality bias with a score of 67 score and a exposure close to 60 for momentum, volatility and yield. The company achieved solid 1-year sales growth of 38.4%, probably due to fuel revenue increase, while EPS declined 3.8%.
CASY increased its NOPAT very smoothly since 2019. In 2018, an extraordinary item seems to have boosted the NOPAT. We note that the last quarter has been promising and that the share price adjusted accordingly.
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