5 Stocks to Gain as Americans Hit the Road
It has been over a year since the coronavirus pandemic has put a halt to day-to-day lives, keeping people from stepping out. With nations ordered to stay indoors, discretionary companies, especially those related to travel, have either gone bankrupt or had to resort to widespread layoffs to keep afloat. In several places, hotels, stadiums, and schools have been turned into hospitals to extend care for patients and quarantine those affected.
The million-dollar question now among the masses is, ‘When will we be able to travel again?’ Though the emergence of a variety of strains has kept doctors, medical professional and administrations worried and skeptical in allowing international travel, domestic travel is reopening in some countries and is likely to begin full swing by summer 2021. Rapid vaccine rollout has been a major support toward the same. In fact, US Centers for Disease Control and Prevention (CDC) has announced that citizens who have been fully vaccinated are no longer needed to wear masks indoors and outdoors, except where required by federal, state, local, tribal, or territorial laws, rules and regulations, including local business and workplace guidance. Additionally, those traveling domestically do not need to get tested before or after arrival or self-quarantine after travel.
As Americans hanker to hit the road after a year of being locked indoors, it will put the spotlight on discretionary stocks, especially travel, hotels, and other leisure products like a mobile home, RVs, and yachts. In fact, murmurs surrounding new mutants of COVID-19 strains are worrying people. Hence, long road trips this summer might be more attractive and boost sales of recreational vehicles. It is not only a safe way to get outside but also an affordable trip option for a family. However, the momentum in solitary leisure will continue. People willing to spend extra time outdoors have also opted for boats, marine products, and services.
Hotspot destinations still stay largely off-limits in some parts of the world, especially as people avoid crossing international borders. On the bright side, journeys along scenic routes and to national parks are likely to increase. Hence, unchartered territories with lesser population become tourist hotspots, leading to a pick-up in sustainable tourism. Many of these locations lack hotels and facilities. Hence, companies like Airbnb can make the most in convincing locals to lease out properties to tourists.
5 Stocks to Buy
Post-pandemic, a continuing shift toward ecotourism will provide a boost to the tourism industry. Countries need to create or shift to more sustainable tourism models and companies engaged in offering products and services for on-road travels and yachts stand to benefit the most. Here are five such stocks that can make the most of such a scenario.
MarineMax, Inc. HZO operates as a recreational boat and yacht retailer. The company's expected earnings growth rate for the current year is 60.2% compared with the Zacks Retail - Miscellaneous industry’s projected earnings growth of 16.3%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 26.9% upward over the past 60 days. MarineMax flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
OneWater Marine Inc. ONEW offers new and pre-owned recreational boats and yachts, and related marine products, such as parts and accessories. This Zacks Rank #1 company's expected earnings growth rate for the current year is 54.9% compared with the Zacks Leisure and Recreation Products industry’s projected earnings growth of 23.3%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 31.3% upward over the past 60 days.
Winnebago Industries, Inc. WGO manufactures and sells recreation vehicles and marine products. The company's expected earnings growth rate for the current year is more than 100% compared with the Zacks Building Products - Mobile Homes and RV Builders industry’s projected earnings growth of 22.6%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 21.9% upward over the past 60 days. Winnebago carries a Zacks Rank #2 (Buy).
Brunswick Corporation BC designs, manufactures, and markets recreation products. This Zacks Rank #2 company's expected earnings growth rate for the current year is 45.4% compared with the Zacks Leisure and Recreation Products industry’s projected earnings growth of 23.3%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 15.7% upward over the past 60 days.
Patrick Industries, Inc. PATK manufactures and distributes components, building products, and materials for the recreational vehicle, marine, manufactured housing, and industrial markets. This Zacks Rank #2 company's expected earnings growth rate for the current year is 78.6% compared with the Zacks Building Products - Mobile Homes and RV Builders industry’s projected earnings growth of 22.6%. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 22.6% upward over the past 60 days.
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MarineMax, Inc. (HZO) : Free Stock Analysis Report
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