|
|
|
|
|||||
|
|
|
Industry Description
The Zacks Leisure and Recreation Products industry comprises companies that provide amusement and recreational products, swimming pools, marine products, golf courses, boat repair and maintenance services, and other ancillary services. The services include indoor and outdoor storage, marine, boat rentals and personal watercraft. Some industry participants manufacture outdoor equipment and apparel for climbing, mountaineering, backpacking and skiing. A few companies also provide connected fitness products and subscriptions for multiple household users. Industry players primarily thrive on overall economic growth, which fuels consumer demand for products. The demand, highly dependent on business cycles, is driven by a healthy labor market, rising wages and growing disposable income.
3 Trends Shaping the Future of the Leisure & Recreation Products Industry
Booming Golf Business: The golf industry has been doing exceptionally well in the past couple of years. The demand for golf equipment is rising due to advancements in technology. Innovations like adjustable hosels and aerodynamic clubhead designs are offering players more tailored and efficient options to improve their game. The game is benefiting from an increase in the participation of young people. Technology also plays a vital role in reshaping sports. India and China have become two of the most significant emerging golf markets. With more than 16,000 golf courses and a strong network of related businesses from equipment manufacturers to apparel brands and hospitality services, the industry supports jobs nationwide.
Robust Demand for Fitness-Related Products: The demand for fitness-related products in the United States has been strong, driven by growing health awareness, lifestyle changes and a focus on personal well-being. Consumers continue to invest in home workout equipment, wearable fitness technology and subscription-based fitness programs. The rise of digital fitness platforms and at-home workout solutions has fueled interest, especially among those seeking convenience and flexibility.
Economic Uncertainty: The U.S. economy is navigating a mixed landscape in 2025, marked by resilient consumer spending but tempered by ongoing inflationary pressures and higher interest rates. While the labor market remains relatively strong, signs of cooling are emerging in certain sectors, reflecting cautious hiring and slower wage growth. At the same time, global uncertainties, including supply-chain adjustments and geopolitical tensions, add to economic headwinds. Overall, the economy is showing steady but moderated growth, with policymakers balancing the need to control inflation without stalling momentum.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Products industry is grouped within the broader Consumer Discretionary sector.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects.
The Leisure and Recreation Products industry currently holds a Zacks Industry Rank of #56, placing it in the top 23% of more than 243 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries results from the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, analysts are gaining confidence in this group’s earnings growth potential. Since June 30, 2025, the industry’s southbound estimate for the current year has increased 8.2%.
Before we present a few stocks from the industry that you may want to buy, let us look at the industry’s recent stock market performance and valuation picture.
Industry Underperforms the S&P 500
The Zacks Leisure and Recreation Products industry has underperformed the Zacks S&P 500 composite and its sector in the past year. Stocks in the industry have collectively grown 16% compared with the S&P 500’s rise of 19.5%. The Zacks Consumer Discretionary sector has rallied 17.4% in the same time frame.
.jpg)
Valuation
On the basis of forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 25.65X compared with the S&P 500’s 23.55X and the sector’s 18.45X. In the past five years, the industry has traded as high as 40.44X and as low as 14.31X, the median being 22.61X, as the charts show.
.jpg)
3 Leisure & Recreation Products Stocks to Watch
Peloton: Investor sentiment surrounding PTON has turned more optimistic, supported by the company’s hotel partnerships andretail expansion. At the end of the fourth quarter of 2025, Peloton reported 552,000 Ending Paid App Subscriptions and $607 million in total revenues, including $199 million from Connected Fitness products and $408 million from subscriptions, exceeding the company’s guidance by $21 million. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Peloton’s fiscal 2026 earnings are expected to witness a year-over-year upsurge of 123.3%. The PTON stock has soared 82.1% in the past year.
.jpg)
Topgolf Callaway: MODG is gaining momentum from solid consumer demand in its golf equipment segment, coupled with effective gross margin and cost-saving initiatives across the business. The company has also seen strong contributions from Topgolf, wherein value-focused strategies have boosted traffic and sales performance. These factors, along with resilient trends, have enabled Topgolf Callaway to offset the impacts of higher tariffs, while supporting an improved full-year outlook for its ongoing operations.
Shares of this Zacks Rank #1 company have declined 4.7% in the past year. MODG’s 2025 loss per share estimates have narrowed in the past 60 days.
Acushnet Holdings: The company continues to benefit from steady demand for its Titleist golf equipment, with strong traction in Pro V1 balls and GT drivers driving momentum. Growth in golf gear categories has also supported higher sales, while the U.S. golfer base expanded for the seventh consecutive year in 2024, reflecting rising participation. Globally, engagement in the sport remains resilient even amid weather-related challenges in certain regions. The company is well-positioned for the second half of 2025 with the launch of Titleist T-series irons, Scotty Cameron putters and FootJoy shoe extensions, which are expected to fuel growth.
The Zacks Rank #2 company’s 2025 earnings are expected to witness a year-over-year increase of 2%. The GOLF stock has risen 27.8% in the past year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).
| 6 hours | |
| Oct-24 | |
| Oct-24 | |
| Oct-24 | |
| Oct-24 | |
| Oct-24 | |
| Oct-23 | |
| Oct-23 | |
| Oct-22 | |
| Oct-22 | |
| Oct-21 | |
| Oct-21 | |
| Oct-21 | |
| Oct-20 | |
| Oct-20 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite