BUSINESS
Will the Consumer Cyclical Stocks Continue to Sizzle?
United StatesSun Sep 15 2024
The Consumer Cyclical sector has been on a hot streak lately, with two top analysts predicting further growth for Domino's Pizza Enterprises Limited and Academy Sports and Outdoors. But before we dive into the specifics, let's take a step back and consider the bigger picture.
Are these analysts just caught up in the hype, or is there truly something special about these stocks? Let's take a closer look at the numbers. Domino's Pizza Enterprises Limited, for instance, has seen its shares close to its 52-week low of $19. 19. Citi analyst Sam Teeger, who has a 3-star rating and an average return of 1. 8%, believes that the company has a lot of potential for growth. With a price target of A$38. 50, it's clear that Teeger is optimistic about the company's future. But what if this assumption is wrong? What might the author have missed?
Meanwhile, Academy Sports and Outdoors has seen its shares close at $55. 38, with Goldman Sachs analyst Kate McShane maintaining a Buy rating and a price target of $65. 00. McShane has a 4-star rating and an average return of 3. 6%, making her a respected voice in the industry. But what if the company's growth slows down in the next quarter? What would that mean for the stock?
Here are some key points to keep in mind:
• Domino's Pizza Enterprises Limited has a Moderate Buy analyst consensus with an average price target of $25. 32.
• Academy Sports and Outdoors has a Moderate Buy analyst consensus with an average price target of $62. 77.
• Both analysts have a strong track record, with Teeger having a 41. 8% success rate and McShane having a 59. 2% success rate.
• However, it's worth noting that the Consumer Cyclical sector is heavily influenced by consumer spending, which can be volatile.
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questions
Is it possible that the analysts' predictions are based on inaccurate or outdated information?
Are there any potential conflicts of interest that could impact the objectivity of these analyst ratings?
Can the price targets for these stocks be used to calculate the total value of the analysts' imaginary portfolios?
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