People are increasingly looking forward to more than just travel and “staycations” regarding how they spend their spare time. This is because of the increased growth recently seen in the leisure industry. Interactive teaching methods, mass customization, AI that supports cashless transactions, technological ecosystems, data, and machine learning insights, and augmented reality are some of the biggest trends branching out from tech and influencing the… leisure industry? Really? Yup.
Leisure and fitness-related attitudes are evolving at a global level. Many people who had never been motivated to exercise or stay active started taking regular walks and looking to satisfy their fitness needs during the pandemic. The need for recreation and exercise resources both at home and at work will dramatically expand as a result. The proportion of Americans 65 and older is expected to rise from 15% to 24% between 2018 and 2060, with growing demand for various forms of recreation and entertainment.
I’ve considered track records of success, growth, analyst sentiment, and fundamentals. As the industry expands while prices are down, these leisure stocks come with strong buy ratings; Analysts agree that these tickers could be great opportunities:
Planet Fitness Inc (PLNT)
Planet Fitness, Inc. (PLNT) and its subsidiaries operate and license fitness facilities under a popular name in the fitness world. PLNT conducts operations in the U.S., Panama, Canada, Puerto Rico, Mexico, and Australia. PLNT sells exercise equipment to franchised establishments in the U.S. and Canada. PLNT was established in 1992 and is based in New Hampshire. PLNT announced that its franchisees and members had given more than $8 million to Boys & Girls Clubs of America since 2016, with $500,000 introduced to the fund just in October, made possible by PLNT’s charitable program, The Judgement Free Generation®, striving to eradicate bullying and encourage compassion among young people.
PLNT reported solid numbers for Q3, beating analysts’ projections for EPS and revenue by 11.37% and 4.18%, respectively. Let’s look at a few of PLNT’s impressive metrics, with year-over-year growth (alongside): Revenue of $229.81 million (+63.69%), a net income of $26.91 million (+54.29%), and EPS growth of 52.38%. For the current quarter, estimates show a current EPS of 47 cents per share and $270.7 million. PLNT’s stock is down 14.85% year-to-date, but the intrinsic value depends on who you ask. Analysts that offer yearly pricing estimates have given PLNT a consensus median price target of 90.00, with a high of 115.00 and a low of 72.00. This estimate shows a 16.69% increase from its last price, and the consensus also leans heavily on PLNT’s buy rating. Even stocks need exercise.
Pool Corporation (POOL)
Pool Corporation (POOL) sells swimming pool materials, equipment, and associated leisure items on a wholesale basis. POOL also provides non-discretionary pool maintenance items such as chemicals and replacement parts and discretionary products such as packaged pool kits. POOL’s selection includes a vast selection of residential and commercial irrigation parts and products, landscaping equipment, and other specialty products. POOL was created in 1993 and is based in Covington, Louisiana. Well-regarded for years as an industry leader, POOL offers over 200,000 items from over 2,200 suppliers to over 120,000 professional contract and store clients, with 70% of its transactions done in person. POOL’s scale allows it to spend on its supply chain, technology, and customer support to set itself apart.
POOL brings in over 60% of its revenue from pool maintenance, giving it an expanding environment of recurring income as new pools are built each year. As of Q3 ‘22, POOL was/is working with a profit margin of 21.86%, revenue of $6.12 billion, EPS of $4.82 per share, and a Return on Equity margin of 72.07%. All the while, POOL’s stock is down year-to-date and is widely considered undervalued. Let’s not forget that POOL has a dividend yield of 1.27%, with an annual payout of $4.00 per share. Analysts who project 12-month pricing have given POOL a consensus median price target of 350.00, with a high of 420.00 and a low of 305.00. The estimate shows an 8.98% increase over current pricing, and POOL’s buy rating is something for investors with a large enough budget to consider.
Cedar Fair LP (FUN)
Cedar Fair, LP (FUN) owns and runs amusement parks, water parks, and resorts throughout the U.S. and Canada. FUN’s theme parks include Cedar Point in Sandusky, Ohio; Kings Island near Cincinnati; California’s Great America in Santa Clara; Canada’s Wonderland near Toronto; Worlds of Fun in Kansas City, Missouri; and two Schlitterbahn Waterpark locations —- one in New Braunfels, Texas and the other in Galveston, Texas. Established in 1983, FUN is based in Sandusky, Ohio.
FUN’s revenue hit a record $843 million, a 12% increase ($90 million) over the same period last year. Let’s look at critical year-over-year growth for FUN: Revenue +34.30%, Net Income +125.05%, EPS +125.38%, and Net Profit Margin growth of 101.12%. FUN also offered a killer surprise for Q3– it reported an EPS of $5.86 vs. the $3.90 expected, an extraordinary margin of 50.53%. FUN’s Board of Directors recently declared a quarterly cash dividend payout of $0.30 per unit ($1.20 per unit annually), with a 2.89% yield. Analysts who provide 12-month price predictions give FUN a median price target of 51.00, with a high of 58.00 and a low of 41.00. The estimate represents a 22.63% increase from its last price, and FUN has a strong buy rating that can arguably base itself on any number of market factors.
Read Next – BREAKING: Military to spend billions on “Living Missile”
In 2018, Secretary of Defense Jim Mattis drafted a top-secret plan called “Project Overmatch.”
It says that the weapons we have right now were designed to win wars in the 20th century.
But to “Overmatch” our enemies in the 21st Century, we’re going to need 21st century weapons.
Now here’s what most people don’t know.
“Project Overmatch” just received final approval to be implemented in March.
That’s given the Pentagon an extra $37.2 billion to spend on adding next generation weapons over the next 12 months.
At the center of all this spending is a new “living missile.”
CBS News Reports:“It’s an entirely new type of weapon.”
The NY Times Reports:“No existing defense can stop it.”
And the U.S. Army said, “We’re going to make a lot of them very quickly.”
We’ve just prepared a new report on the small defense contractor that makes this weapon – plus three other small defense firms best positioned to ride this mega-trend…
Please take a few seconds and download a pdf copy right now before the report link expires…
GET: “21st Century Battlefield: 4 Companies Changing Warfare” >>>
