Given the strong growth in employment in the leisure and hospitality sector in October, four high-quality travel and leisure stocks, Brunswick Corp. (BC, Finance), Monarch Casino & Resort Inc. (MCRI, Finance), Nautilus Inc. (NLS, Finance) and Escalade Inc. (Escale, Financial) according to All-in-One Screener, a premium feature of GuruFocus.
On Friday, the US Bureau of Labor Statistics said the number of non-farm workers rose by 531,000 in October, beating the Dow Jones estimate of 450,000 new jobs. The agency also reported that non-farm employment rose 18.2 million from its April 2020 low, but fell 4.2 million from pre-pandemic levels in February 2020.
The leisure and hospitality sector led the way in employment growth with 164,000 new jobs in October and 2.4 million new jobs year-to-date. As a result, investors may find opportunities in travel and leisure stocks that have high financial strength and profitability but are not grossly overvalued based on GF Value. GuruFocus’ exclusive valuation method is based on Peter Lynch’s profit line and takes into account the historical multiples of a share and adapts to past and future growth estimates. While price-GF-value ratios of less than 0.9 indicate an undervaluation, price-GF-value ratios above 1.3 indicate a significant overvaluation.
Braunschweig shares (BC, Financial) was trading around $ 100.31, indicating the stock is fairly valued based on the price-to-value ratio of 1.08 on Friday.
GuruFocus rates the profitability of the Mettawa, Illinois-based fitness and boat maker at 7 out of 10 due to several positive investment signs, including a high Piotroski F-Score of 8 and an operating margin that averaged 5.7 in the past % per year has risen for five years, outperforming more than 84% of global competitors.
The gurus with holdings in Braunschweig include Pioneer Investments and
Chuck Royce (Trades, Portfolio) ‘s Royce Investment Partners.
Monarch Casino & Resort
Shares in Monarch Casino & Resort (MCRI, Financial) was trading around $ 72.25, indicating the stock is slightly overvalued based on Friday’s price-to-value ratio of 1.22.
GuruFocus ranks the Reno, Nevada-based hospitality company’s profitability at 7 out of 10 based on several positive signs of investment, including a high Piotroski F-Score of 7 and profit margins and returns that outperform more than 87% of global competitors.
Nautilus shares (NLS, Financial) was trading around $ 10.27, indicating that the stock is significantly undervalued based on Friday’s price-to-value ratio of 0.59.
GuruFocus rates the Vancouver, Washington-based fitness solutions firm’s financial strength 8 out of 10 on several positive investment signs, including a high Piotroski F-score of 7, a strong Altman Z-score of 5.45, and an above-average interest coverage and leverage ratio more than 70% of global competitors.
Shares of Escalade (Escale, Financial) was trading around $ 20.14, indicating that the stock is fairly valued based on the price-to-value ratio of 0.92 on Friday.
GuruFocus rates the Evansville, Indiana-based company’s financial strength and profitability 7 out of 10 on several positive investment signs, including interest coverage, debt ratios and profit margins that outperform more than 69% of global competitors.
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