From Uber Technologies to Royal Caribbean and Warner Music, the leisure services industry stock group houses an eclectic roster of companies. Investors can add OneSpaWorld, an operator of health and wellness salons aboard cruise ships and other locales, to that list.
While the group ranks a lackluster No. 118 out of the 197 industries IBD tracks, OneSpaWorld and Uber stock both rank in the top 3% of all companies in terms of key stock-picking factors.
Showing institutional demand, both OneSpaWorld and Uber sport an A Accumulation/Distribution Ratings. In a further show of demand, OneSpaWorld's strong 1.8 up/down volume ratio more than doubles the 0.9 score for Uber. But for look for that metric for Uber stock to rise after the ride-share pioneer gapped up to a record high in heavy volume Wednesday.
While OneSpaWorld did not join Uber on this month's list of new buys by the best mutual funds, there are 11 funds with an A+ or A rating that own shares of the company's stock.
But unlike Uber, OneSpaWorld has cruised onto the IBD Breakout Stocks Index, which gets updated weekly.
See Who Joins OneSpaWorld On The IBD Breakout Stocks Index
OneSpaWorld Targets 410% Earnings Growth In 2024
Based in Nassau, Bahamas, OneSpaWorld is a global provider of health and wellness services and products. It caters to the needs of its clientele across the globe at sea via salons aboard cruise ships. It also operates on land at destination resorts around the world.
The company's salons offer traditional and alternative massage, body and skin care treatment options. It also offers hair and nail services, acupuncture, medi-spa services and more.
While profits have proved elusive, the earnings trend has been moving in the right direction. Albeit based on comparisons to prior-year quarters that showed a loss, the company has now posted four quarters of triple-digit or even better earnings growth in the second half of 2022 and the first half of 2023.
OneSpaWorld then delivered a 275% year-over-year spike to 15 cents a share in the second quarter. That was followed by a 69% gain to 22 cents a share in the third quarter. While sales have slowed from a torrid, triple-digit pace, revenue still grew 33% to $216.3 million in Q3.
Analysts expect a 64% year-over-year decline to 10 cents for fiscal 2023. But Wall Street also predicts a 410% jump to 51 cents a share for fiscal 2024.
OneSpaWorld is scheduled to report fourth-quarter and full-year numbers on Feb. 28. Along with Uber, the company shares a B SMR Rating, which tracks sales growth, profit margins and return on equity.
OneSpaWorld Bubbles Back Into Buy Range
Since breaking out of a double bottom base in November, Uber stock has continued to rise. OneSpaWorld also broke out around the same time from the same chart pattern.
On Monday, OneSpaWorld stock cleared a 14.67 buy point of a second-stage cup base with a jump in volume. On Friday, volume came in 153% above average, followed by a 92% spike in volume on Monday.
That move coincided with a solid rise in its relative strength line, a sign of rising market leadership.
OneSpaWorld shook off some trouble in the market indexes earlier this week. OSW stock slipped below its initial entry on Tuesday but popped back above it on Wednesday. OneSpaWorld closed today's session up over 2%, putting it 1% above the 14.67 buy point.
Meanwhile, Uber stock has gapped up to an all-time high after finding support at its 21-day exponential moving average.
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Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
