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Relax With These Leisure Stocks

June 16, 2017
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The stock market has strong sectors that have almost nothing to do with semiconductors.  Can you believe it?  It seems of late that technology has been the only space that investors are focused on, but there is more to the market that just chips.  

I looked at the Zacks Industry Rank and found a sector that had several recent positive earnings estimate revisions.  This is just what I love to see, a sector that has is riding the positive momentum of increased expectations.  

Industry Rank #23 of 256

The leisure and recreational products industry is in the top 9% of the industries that are covered by the Zacks Industry Rank.  This is right up at the top, but could still see some improvement.  I like to see room to grow, and this sector has it with only 3 of 16 stocks holding the coveted Zacks Rank #1 (Strong Buy).  Four of the stocks are Zacks Rank #2 (Buy) while the remainder are all Zacks Rank #3 (Hold).  This is also a  good signal as there are no sell or strong sell stocks in the group.

Among the Zacks Rank #1 (Strong Buy) stocks in the group, we have Johnson Outdoor (JOUT).  The value investors among us should like this stock as it have a Value Style Score of C and a forward earnings multiple of 18x.  Growth investors don’t have a lot to look at here, with a Growth Style Score of F.  That tends to stop me in my tracks as I prefer to go after growth stocks instead of value.’

Johnson Outdoors Inc. Price and Consensus

Johnson Outdoors Inc. Price and Consensus | Johnson Outdoors Inc. Quote

Strum, Ruger (RGR) is also on the list of Zacks Rank #1 (Strong Buy) in this industry.  This is another play where value investors have the edge.  The has a Value Style Score of B and forward earnings multiple of 15x which is pretty good.  

Buys, Just Not Strong Buys

The list of Zacks Rank #2 (Buy) in the industry includes Pool Corporation (POOL). Estimates have increased recently for the pool maker, with the 2017 Zacks Consensus Estimate moving from $4.08 to $4.23 over the last 60 days. The 2018  Zacks Consensus Estimate moved up $4.58 as well.

Pool Corporation Price and Consensus

Pool Corporation Price and Consensus | Pool Corporation Quote

Finally, we have Calloway Golf ( ELY) which is a Zacks Rank #2 (Buy) but has some rather poor style scores.  The stock trades at 34x forward earnings estimates, and that is a little high. Still, estimates are increasing for the golf club and ball maker.  

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Sturm, Ruger & Company, Inc. (RGR): Free Stock Analysis Report

Pool Corporation (POOL): Free Stock Analysis Report

Johnson Outdoors Inc. (JOUT): Free Stock Analysis Report

Callaway Golf Company (ELY): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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