7 mid-cap consumer service stocks to keep an eye on

Highlights

• Scientific Games Corp (NASDAQ:SGMS) generated a 75.20% return YTD. The stock closed at US$70.06 on Sep 3.
• Boyd Gaming Corporation (NYSE:BYD) has a P/E ratio of 21.07. The stock rose 45.32% YTD.
• Wingstop Inc. (NASDAQ:WING) has a P/E of 187.16. The stock grew by 34.14% YTD.

The consumer services companies include those involved in hotels, entertainment, and gaming business, etc. The sector has been in focus after the rapid recovery of the economy.

Here we explore seven such stocks in the market.

Churchill Downs, Incorporated (NYSE:CHDN)

The San Francisco, California-based Churchill Downs is a retailer in personal-care products, accessories, and apparels. The company has a market capital of US$ 9.4 billion.

CHDN has a P/E ratio of 12.8 and the forward P/E for one year is 11.36. The company’s current dividend yield is 1.91% and annualized dividend is US$0.48.

Its revenue for the June quarter of 2021 was US$515.1 million compared to US$185.1 million for the June quarter in the prior year. The net income was US$108.3 million against the net loss of US$118.8 million in the same period of 2020.

The stock closed at US$216.9 on Sep 3. Its YTD return is 14.07%.                 

Also Read: Top five stocks to explore under US$50

Source - pixabay

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Endeavor Group Holdings, Inc. (NYSE:EDR)

Endeavor is an entertainment and sports company based in Beverly Hills, California. It has a market capitalization of US$7.09 billion and a forward P/E one year of 38.23.

For the quarter ended June 30, 2021, its revenue and net losses were US$1.11 billion and US$(516.8) million, respectively. In the corresponding quarter of the previous year, the revenue was US$462.9 million and the net loss was US$(495.8) million.

It closed at US$27.14 on Sep 3, 2021.

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Scientific Games Corp (NASDAQ:SGMS)

The Las Vegas, Nevada-based Scientific Games Corp provides technology-based products and services for the gaming and lottery industry. The company earns revenue from supplying gaming machines, table game products and services and casino management systems.

The company has signed a 10-year agreement with Azerlotereya, the national lottery in Azerbaijan operated by Turkish company Demirören.

Its market capitalization is US$7 billion and forward P/E for one year is 58.38.

The revenue for the June quarter was US$880 million compared to US$539 million for the same quarter the previous year. The net income was US$113 million against a net loss of US$(198) million in the June quarter of 2020.

SGMS stock generated a 75.20% return YTD. The stock closed at US$70.06 on Sep 3.

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Boyd Gaming Corporation (NYSE:BYD)

The company owns and operates gaming properties based in Las Vegas, Nevada. Its entertainment properties include casinos, table games, and slot machines. On Sep 1, the company announced to donate US$250,000 to the largest food bank in southern Louisiana, which suffered damage in Hurricane Ida.

The company has a market capitalization of US$7 billion, P/E ratio of 21.07, and a forward P/E one year of 12.96. For the June quarter of 2021, the revenue was US$893.6 million compared to US$209.9 million in the June quarter of the prior year. Its net income was US$113.7 million against a net loss of US$(108.5) million in the previous year’s June quarter.

Boyd gaming stock raised 45.32% YTD. It closed at US$60.66 on Sep 3, 2021.      

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Choice Hotels International, Inc. (NYSE:CHH)

The Rockville, Maryland-headquartered Choice Hotels Inc. operates around 601,245 rooms in different budget segments such as economy and midscale. Its market capitalization is US$7 billion, the P/E ratio is 51.43, and the forward P/E for one year is 31.19. The dividend yield is 0.76% and annualized dividend is US$0.90.

The revenue and net income for the June quarter of 2021 were US$278.3 million and US$85.88 million, respectively. In the June quarter of 2020, the revenue was US$151.7 million, and the net loss was US$(2.44) million.

The stock rose 12.27% YTD. Its closing price on Sep 3 was US$118.85.

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Source – Pixabay

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Marriott Vacations Worldwide Corporation (NYSE:VAC)

The company is based in Orlando, Florida. It owns and operates accommodation facilities such as resorts and hotels. Its market capitalization is US$6.49 billion and the forward P/E for one year is 37.13.

The revenue for the June quarter of 2021 and 2020 were US$979 million and US$480 million, respectively. The net income was US$8 million for the June quarter of 2021 against the net loss of US$(62) million in the same quarter a year ago.

The stock closed at US$149.27 on Sep 3. The stock gave a return of 10.67% YTD. 

Also Read: Five gaming stocks to keep an eye on as industry continues to expand

Wingstop Inc. (NASDAQ:WING)

The Dallas, Texas-based Wingstop Inc operates restaurants. The company has a market capitalization of US$5.29 billion. Its P/E is 187.16, the forward P/E is 118.09, the dividend yield is 0.39%, and the annualized dividend is US$0.68.

It booked revenue of US$74 million for the quarter ended June 26, 2021, against US$66 million for the same period a year ago. The net income for the June quarter of 2021 and 2020 were US$11.3 million and US$11.5 million, respectively.

The stock grew 34.14% YTD. It closed at US$ 175.96 on Sep 1, 2021.

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Bottomline     

The Dow Jones US Consumer Services Total Stock Market Index (DWCCSV) gave a 12.69% return YTD. Mid-cap stocks can be volatile at times. Hence, investors must evaluate the stocks carefully before investing.