Zacks Industry Outlook Highlights Amer Sports, Pool and Malibu Boats

For Immediate ReleaseChicago, IL – January 30, 2025 – Today, Zacks Equity Research discusses Amer Sports, Inc. AS, Pool Corp. POOL and Malibu Boats, Inc. MBUU.Industry: Leisure & RecreationLink: https://www.zacks.com/commentary/2405331/top-3-leisure-recreation-stocks-to-defy-industry-headwindsThe Zacks Leisure and Recreation Products industry faces challenges due to high inflation, uncertainty surrounding the Federal Reserve's future rate cut plans and a decline in consumer confidence. However, a positive fitness product sales trend, driven by growing health and fitness awareness, bodes well for the industry. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Amer Sports, Inc., Pool Corp. and Malibu Boats, Inc. are likely to benefit from the trends mentioned above.Industry DescriptionThe 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.4 Trends Shaping the Future of the Leisure & Recreation Products IndustryUncertain Economy:U.S. consumer confidence declined for the second consecutive month in January as concerns over the labor market and inflation resurfaced. According to data released by the Conference Board on Tuesday, the consumer confidence index dropped to 104.1 from a revised 109.5 in December. The Federal Reserve took a more cautious approach during its December-end meeting, indicating that rate cuts in 2025 could be less frequent.Weather Disruption Hurts:The industry is highly vulnerable to changing weather conditions. For instance, the demand for skiing directly depends on the amount and timing of snowfall. Swimming pool manufacturers always witness higher demand in summer. Additionally, there is a general boost in demand for outdoor and sports activities during the holiday season. Most companies in the recreational products space have specific quarters of revenue growth.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.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 further fueled interest, especially among those seeking convenience and flexibility.Zacks Industry Rank Indicates Dismal ProspectsThe 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 dismal near-term prospects.The Leisure and Recreation Products industry currently carries a Zacks Industry Rank #168, which places it in the bottom 33% of more than 250 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 bottom 50% of the Zacks-ranked industries results from the negative 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.Before we present a few stocks from the industry that you may want to hold, let us look at the industry's recent stock market performance and valuation picture.Industry Underperforms the S&P 500The Zacks Leisure and Recreation Products industry has underperformed the Zacks S&P 500 composite but outperformed its sector in the past year. Stocks in the industry have collectively grown 14.8% compared with the S&P 500's rise of 23%. The Zacks Consumer Discretionary sector has rallied 12.3% in the same time frame.ValuationOn the basis of forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 29.3X compared with the S&P 500's 22.3X and the sector's 18.45X. In the past five years, the industry has traded as high as 29.3X and as low as 21.47X, the median being 25.24X.3 Leisure & Recreation Products Stocks to WatchAmer Sports: The company is benefiting from robust outdoor segment performance. It anticipates 2024 revenue growth to reach the upper end of the previously projected 16-17% despite challenges posed by unfavorable foreign exchange rates in the fourth quarter 2024. The company also expects its adjusted operating margin for the year to align with the high end of the earlier mentioned 10.5-11.0%.Amer Sports reported that it fully repaid $1.2 billion in outstanding term loans during the fourth quarter. As a result, the company projects its adjusted net finance costs for fiscal 2025 to be $120 million, suggesting a significant reduction from the prior stated $180-190 million. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.AS's fiscal 2025 earnings are expected to witness year-over-year growth of 46.7%. The AS stock has soared 113.4% in the past year.Pool Corp: The company continues to focus on growing its franchise network and expanding support for independent retail dealers. POOL is optimistic regarding the technology investments and anticipates the initiative to provide sales and productivity gains. This, and the focus on the Pool360 technology rollouts and expanded digital marketing efforts bode well.The Zacks Rank #2 company's earnings per share in 2025 are expected to grow 8% year over year. The stock has declined 8.7% in the past year.Malibu Boats: This Loudon, TN-based company operates as a designer, manufacturer and marketer of sport boats primarily in the United States. The company has shown resilience in managing a tough retail environment by focusing on factors within its control, particularly through disciplined inventory management and strategic initiatives.Shares of this Zacks Rank #2 company have declined 0.3% in the past six months. The company's fiscal 2025 earnings are expected to witness year-over-year growth of 22.4%.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Join us on Facebook: https://www.facebook.com/ZacksInvestmentResearch/Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Pool Corporation (POOL): Free Stock Analysis Report Malibu Boats, Inc. (MBUU): Free Stock Analysis Report Amer Sports, Inc. (AS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks