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Spotting Winners: Mister Car Wash (NASDAQ:MCW) And Specialized Consumer Services Stocks In Q1

MCW Cover Image

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the specialized consumer services industry, including Mister Car Wash (NASDAQ: MCW) and its peers.

Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to do serve customers better.

The 10 specialized consumer services stocks we track reported a slower Q1. As a group, revenues missed analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.

Mister Car Wash (NASDAQ: MCW)

Formerly known as Hotshine Holdings, Mister Car Wash (NYSE: MCW) offers car washes across the United States through its conveyorized service.

Mister Car Wash reported revenues of $261.7 million, up 9.4% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ same-store sales estimates.

Mister Car Wash Total Revenue

Unsurprisingly, the stock is down 8.6% since reporting and currently trades at $6.27.

Is now the time to buy Mister Car Wash? Access our full analysis of the earnings results here, it’s free.

Best Q1: Frontdoor (NASDAQ: FTDR)

Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ: FTDR) is a provider of home warranty and service plans.

Frontdoor reported revenues of $426 million, up 12.7% year on year, outperforming analysts’ expectations by 2.1%. The business had a very strong quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.

Frontdoor Total Revenue

Frontdoor pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 41.1% since reporting. It currently trades at $57.99.

Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: 1-800-FLOWERS (NASDAQ: FLWS)

Founded in 1976, 1-800-FLOWERS (NASDAQ: FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally.

1-800-FLOWERS reported revenues of $331.5 million, down 12.6% year on year, falling short of analysts’ expectations by 9%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

1-800-FLOWERS delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 7.4% since the results and currently trades at $5.37.

Read our full analysis of 1-800-FLOWERS’s results here.

Carriage Services (NYSE: CSV)

Established in 1991, Carriage Services (NYSE: CSV) is a provider of funeral and cemetery services in the United States.

Carriage Services reported revenues of $107.1 million, up 3.5% year on year. This number beat analysts’ expectations by 2.8%. Taking a step back, it was a mixed quarter as it also produced an impressive beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.

Carriage Services delivered the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is up 11.3% since reporting and currently trades at $44.42.

Read our full, actionable report on Carriage Services here, it’s free.

Matthews (NASDAQ: MATW)

Originally a death care company, Matthews International (NASDAQ: MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies.

Matthews reported revenues of $427.6 million, down 9.3% year on year. This result missed analysts’ expectations by 1.8%. It was a softer quarter as it also logged a significant miss of analysts’ EPS estimates. 

The stock is up 4.1% since reporting and currently trades at $21.29.

Read our full, actionable report on Matthews here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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