Here's Why Investors Should Retain Brunswick Stock for Now

Brunswick Corporation BC is likely to benefit from strong boating participation, innovative product launches and investments in digital assets. Also, the focus on the Mercury Marine division bodes well. However, an uncertain tariff environment is a concern.

Growth Drivers for BC Stock

Brunswick is well-positioned for growth, driven by robust demand for recreational boating, and ongoing investments in innovation, strong aftermarket sales, a growing customer base and strategic acquisitions. Management has highlighted resilience in the marine market and strong consumer engagement across its brands, reinforcing its dominant position in the global boating industry.

Brunswick’s propulsion segment remains a key driver of growth, with Mercury Marine gaining market share driven by its advanced outboard engines and strong dealer network. The company's recent introduction of the V10 and V12 Verado outboards has been met with strong demand, further strengthening its position in the high-horsepower segment. Additionally, Brunswick continues to see growth in its Freedom Boat Club, which expands access to boating and attracts new customers to its ecosystem, driving long-term revenue opportunities.

The company is making significant investments in technology and digital transformation to enhance the boating experience. Brunswick’s ACES (Autonomy, Connectivity, Electrification and Shared Access) strategy remains a focal point of its long-term growth plans, with advancements in electric propulsion, smart boating technology and autonomous navigation. The recent launch of VesselView Mobile and the expansion of Navico Group’s marine electronics offerings further enhance connectivity and user experience across its brands.

Looking ahead, Brunswick remains confident in its ability to navigate macroeconomic challenges while capitalizing on long-term industry tailwinds. The company’s extensive dealer network, commitment to innovation and digital solutions position it well for growth and shareholder value in the years ahead.

Brunswick’s Concerns

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Shares of Brunswick have plunged 15.5% in the past three months compared with the industry’s 1% fall. The downside was due to an uncertain tariff environment.

The company remains subject to significant tariffs, including those under the China Section 301 investigation, with no guarantee of future exclusions. Additionally, evolving trade policies under the new administration may introduce further tariffs on imports from China, Mexico, Canada or other jurisdictions, with limited or no exemptions available. Given its substantial global footprint, the company is vulnerable to changes in the United States and foreign trade policies and international trade agreements. Brunswick expects an annualized tariff impact of approximately $35 million in 2025.

BC’s Zacks Rank & Stocks to Consider

Brunswick currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Consumer Discretionary sector are RCI Hospitality Holdings, Inc. RICK, Mattel, Inc. MAT and Royal Caribbean Cruises Ltd. RCL.

RCI Hospitality currently sports a Zacks Rank #1 (Strong Buy). The company delivered a trailing four-quarter earnings surprise of negative 62.9%, on average. The stock has declined 22.7% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for RCI Hospitality’s 2025 sales and EPS indicates growth of 2.5% and 1,278.8%, respectively, from year-ago levels.

Mattel currently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 37.6%, on average. The stock has declined 0.9% in the past year.

The Zacks Consensus Estimate for Mattel’s 2025 sales and EPS indicates growth of 1.4% and 4.9%, respectively, from year-ago levels.

Royal Caribbean currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 15.7%, on average. The stock has rallied 49.5% in the past year.

The Zacks Consensus Estimate for Royal Caribbean’s 2025 sales and EPS indicates growth of 9% and 26.7%, respectively, from year-ago levels.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research