Consumer Discretionary Stocks Rated by P/E/Growth Model

Recent report highlights top rated Consumer Discretionary stocks following Peter Lynch's P/E/Growth strategy. Companies like Arhaus Inc. and Beazer Homes USA Inc. demonstrate varying ratings based on their financial fundamentals, indicating implications for potential stock performance.

Date: 01-10-2024

AI Rating: 5

The report presents an evaluation of several Consumer Discretionary stocks according to a model inspired by investment legend Peter Lynch's approach. Each company mentioned shows scores based on fundamental performance and valuation insights.

1. ARHAUS INC (ARHS): The report indicates a score of 74%, with a notable EPS GROWTH RATE marked as a fail. This suggests that while the company maintains a reasonable price-to-earnings (P/E) ratio and strong sales metrics, lack of EPS growth could negatively impact investor sentiment, potentially putting downward pressure on stock prices. The other metrics, such as Total Debt/Equity Ratio and Free Cash Flow, are neutral to positive.

2. BEAZER HOMES USA INC (BZH): Also rated at 74%, this company has a PASS on EPS Growth Rate, indicative of a healthier growth perspective compared to Arhaus. However, the Total Debt/Equity Ratio is marked as a fail, which may raise concerns regarding financial leverage and risk, likely affecting stock performance negatively.

3. HAYWARD HOLDINGS INC (HAYW): This stock scored 72%. Similar to Arhaus, it has a FAIL on the EPS growth rate but passes several other metrics, including the Total Debt/Equity Ratio. Its constant innovation and focus on energy-efficient products could maintain interest among investors despite the lack of EPS growth.

4. EBAY INC (EBAY): Scoring 72%, it presents a healthy EPS growth rate, which can be seen as a strong positive for stock potential. On the downside, its high Total Debt/Equity Ratio and slight fail on other metrics could create hesitancy among cautious investors.

Overall, the trends among these companies indicate critical factors, particularly when evaluating EPS growth as a driving force for stock prices. With mixed results across the reported financial metrics, investor focus will likely remain on EPS growth rates, influencing the attractiveness of these Consumer Discretionary stocks.

Stocks: ARHS BZH HAYW EBAY