Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Most consumer discretionary businesses succeed or fail based on the broader economy. This sensitive demand profile can cause discretionary stocks to plummet when macro uncertainty enters the fray,
and over the past six months, the industry has shed 4.6%. This performance was disappointing since the S&P 500 climbed 4.5%.
Great things are happening to the stocks in this article.
They’re all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase.
Wall Street has issued downbeat forecasts for the stocks in this article.
These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory.
Monster’s first quarter results saw sales come in below Wall Street expectations, reflecting several operational and external pressures. Management highlighted that bottler and distributor ordering patterns, adverse foreign currency impacts, and weaker performance in the Alcohol Brand segment contributed to the revenue decline. Co-CEO Hilton Schlosberg noted, “The first quarter was impacted by bottler distributor ordering patterns in the United States and EMEA...and uncertain economic conditions.” Despite these headwinds, improvements in pricing and supply chain optimization supported gross margin expansion.
Each stock in this article is trading near its 52-week high.
These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
Consumer discretionary businesses are levered to the highs and lows of economic cycles. Over the past six months, it seems like demand trends are working against their favor as the industry
has tumbled by 3.6%. This performance was disappointing since the S&P 500 climbed 4.5%.
Gray Television’s first quarter results for 2025 were received positively by the market, as the company exceeded Wall Street’s revenue and profit expectations despite a year-over-year sales decline. Management attributed the quarter’s performance to stronger-than-anticipated political advertising, ongoing cost containment, and the growing contribution from local sports broadcasting. CEO Hilton Howell highlighted the impact of new local sports rights agreements, stating, “the combination of our premier local news franchises with local sports make our local stations even more relevant and more valuable than ever.”
Hilton Grand Vacations' first quarter results for 2025 were marked by flat year-over-year revenue and non-GAAP earnings that missed Wall Street expectations, yet the market responded favorably. Management attributed the quarter’s performance to process improvements that boosted transaction activity and value per guest, as well as robust demand from existing members. CEO Mark Wang cited “an acceleration in transactions, VPG growth, and sales growth in the quarter,” highlighting the benefits of recent operational initiatives and continued strength in vacation package sales. While macroeconomic volatility was acknowledged, the company pointed to stable arrival trends and strong engagement among its prepaid member base as key drivers.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Hilton Grand Vacations (NYSE:HGV) and the best and worst performers in the travel and vacation providers industry.
Hilton’s first quarter results for 2025 were met with a positive market reaction, reflecting the company’s ability to deliver non-GAAP earnings above Wall Street expectations despite a slight revenue shortfall. Management highlighted that solid group bookings and continued expansion of its global hotel portfolio supported performance, even as leisure demand softened toward the end of the quarter. CEO Chris Nassetta attributed the quarter’s results to strength in urban and group travel segments, as well as momentum in international markets, noting, “We reported system-wide RevPAR growth of 2.5% year-over-year, driven by strong momentum from the end of last year that carried into 2025.”
