VAC

Zacks highlights three Rank #1 (Strong Buy) stocks with attractive dividend yields: Star Bulk Carriers (SBLK) with a 12.3% yield, Marriott Vacations Worldwide (VAC) with a 3.1% yield, and Signet Jewelers (SIG) with a 1.4% yield. All three have seen positive earnings estimate revisions over the last 60 days.

MGM Resorts is scheduled to report Q3 2026 earnings on Oct. 28 with consensus EPS expected to decline 45.8% to 13 cents from 24 cents year-ago, though revenues are projected to grow slightly by 0.1% to $4.25 billion. Strong group bookings and premium gaming demand in Las Vegas are expected to provide support, but softness in lower-end leisure demand and regional operations challenges may weigh on results. The company's Zacks model does not predict an earnings beat.

Las Vegas Sands (LVS) reported disappointing third-quarter 2026 results with adjusted EPS of 54 cents missing estimates by 23.9% and revenues declining 3.5% year-over-year to $3.22 billion. Softer premium gaming demand in Macao and Singapore, combined with elevated operating expenses, drove property EBITDA down 16.7%. Despite the weak results, the company approved a 20% dividend increase and repurchased $950 million in shares.

Hilton Worldwide Holdings (HLT) is expected to report Q3 2026 results on October 27 with an earnings beat predicted by Zacks' model. The company is benefiting from stronger business and group travel demand, steady leisure travel, and a growing hotel pipeline supporting fee growth.

However, Middle East conflict, hotel renovations, and weaker demand in China present headwinds. Consensus estimates project EPS of $2.34 (10.9% growth YoY) and revenues of $3.39 billion (8.5% growth YoY).

Comcast reported Q3 2026 adjusted EPS of $1.07, beating estimates by 9.2%, but consolidated revenues fell 6.1% YoY to $29.3B, missing consensus. Wireless service revenues grew 14.7% and Peacock reached 48M subscribers with profitability, while broadband and video segments faced headwinds. Free cash flow declined to $4.21B as the company paused share repurchases ahead of its planned business separation.

Royal Caribbean is set to report Q3 2026 earnings on October 27 with EPS expected to rise 11% to $6.38, driven by strong cruise demand, record pricing, and increased onboard spending. However, the company faces a 200-basis-point yield headwind from geopolitical tensions and rising operating costs expected to increase 10.4%. The company's Earnings ESP of +0.13% and Zacks Rank #3 suggest a likely earnings beat.

Whirlpool Corporation is projected to report a 62.7% earnings decline in Q3 2026 with revenues expected to fall 3% to $3.91B. The company faces headwinds from weak housing demand, subdued consumer sentiment, rising input costs, and tariff pressures. However, the Small Domestic Appliances segment, particularly KitchenAid, is expected to show resilience with 11.8% growth. The stock trades at a valuation discount but carries a Strong Sell rating with a -74.5% Earnings ESP.

Netflix reported Q3 2026 EPS of 87 cents, up 49% YoY and beating consensus by 6.1%, with operating margin expanding to 34.6%. However, the company trimmed its 2026 ad revenue outlook to $2.7B and free cash flow forecast to $12B due to slower-than-expected ad product rollout. Subscription revenue growth and strong performance in India offset advertising headwinds.

Las Vegas Sands is set to report Q3 2026 results on October 21, with revenues expected to rise 2.2% but EPS declining 1.3% year-over-year. While Marina Bay Sands' upgraded suites and mass gaming momentum should support Singapore operations, Macao faces margin pressures from intense competition and elevated customer reinvestment requirements. The company's earnings surprise model does not predict a beat.

Snap-on (SNA) is expected to report Q3 2026 earnings growth of 4.3% YoY to $4.91 per share with revenues rising 3.1% to $1.2B, driven by strong repair demand and industrial growth. However, the company faces headwinds from cautious customer spending, inflationary costs, and tariff pressures. The stock has a negative Earnings ESP of -0.24% and Zacks Rank of 2, suggesting limited likelihood of an earnings beat.

Zacks analyzes the Leisure and Recreation Services industry, which faces mixed conditions with inflation and economic uncertainty pressuring discretionary spending. Despite challenges from elevated operating costs and geopolitical uncertainty, the industry benefits from sustained demand for travel and experience-based offerings. Four stocks are highlighted: Life Time Group (Strong Buy, +43.4% YoY), Marriott Vacations (Strong Buy, +57% YoY), Marcus Corp (Strong Buy, +85% YoY), and AMC Entertainment (Buy, +13.5% YoY), all expected to show earnings growth in 2026.

The Leisure and Recreation Services industry faces mixed conditions with inflation and economic uncertainty pressuring discretionary spending, while demand for travel and entertainment remains supportive. The industry ranks #170 out of 247 Zacks industries with negative earnings outlook. Key players like Life Time Group, Marriott Vacations, and Marcus Corporation are capitalizing on membership growth, premium offerings, and operational efficiencies, while AMC Entertainment benefits from stronger box-office activity and per-patron spending.