The stock market’s gradual drop continues

All three stock-market indexes fell last week. Even the Nasdaq Composite joined the weary drop party. The Dow started its bearish move on August 15, the S&P on September 7 and the Nasdaq Composite on October 2 but then just barely. The Nasdaq Composite fell hard on Thursday; the fall continued Friday pushing the price below the bullish trend line that has been in place since September 12.

The Leisure Sector gained a huge 5.6% in relative strength since the beginning of October (i.e., a 3% gain is very large). Here are the fundamentals for this sector – continuing our investigation of the hollowed-out earnings in the stock market.

Symbol  3 YR Sales Growth Rate  EPS Est. % Chnge for Cur Yr
PNK 26% -113%
WYN 5% 33%
CTRP 43% -107%
LGF -6% -26%
IGT 34% -14%
EXPE 21% 93%
RCL 2% 32%
MPEL -8% -45%
NFLX 25% 85%
MAR 5% 14%
CCL 1% 16%
LVS -6% -9%
MGM -3% -26%
HTZ 9% 164%

 
The average 3-year sales growth rate of this group is only 10.6% and the average EPS change for the current year is 10.6%. Only eight (of fourteen) of these companies have positive current earnings estimates If this is an example of one of our best and strongest, what must our bottom-feeders look like?

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