Best Leisure Stocks To Watch In June 2022
With the summer season approaching, leisure stocks could be worth checking out in the stock market today. Thanks to worldwide vaccination efforts, people can finally spend their summers outdoors once again. In fact, the travel industry is already seeing a much-welcomed bounce back in demand. Take Delta Air Lines (NYSE: DAL) and American Airlines (NASDAQ: AAL) for instance. In their past quarter financials, the two companies reported strong jumps in their revenues. In addition to that, they also forecast a return to profit by the end of this year.
Indoor leisure options such as Roku (NASDAQ: ROKU) remain relevant as well. Last Friday, Pivotal Research raised its rating on Roku to a hold from sell. In its most recent quarter, the streaming device maker reported a 28% growth in revenue year-over-year. Besides that, Cathie Wood has been adding ROKU stock to her ARK Innovation ETF as well, with it being one of the fund’s top holdings at 8% of the portfolio. With that being said, here are five leisure stocks to check out in the stock market today.
Leisure Stocks To Watch This Week
- Six Flags Entertainment Corp. (NYSE: SIX)
- MasterCraft Boat Holdings Inc. (NASDAQ: MCFT)
- Hilton Grand Vacations Inc. (NYSE: HGV)
- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
- SeaWorld Entertainment Inc. (NYSE: SEAS)
Six Flags Entertainment
Six Flags Entertainment is a company that primarily engages in the business of theme parks. Impressively, the company operates 27 properties throughout North America. These include theme parks, amusement parks, water parks, and a family entertainment center. The company also boasts having one of the highest annual attendance figures in the world. In 2019, Six Flags properties hosted 32.8 million guests.
Recently, the company announced its first-quarter 2022 results. For starters, total revenue came in at $138 million, an increase of $56 million. This signals a rise of 68% compared to the same quarter in 2021. The company thanks this growth in revenue to higher guest attendance and guest spending per capita. As for its earnings, the company narrowed its losses from $96 million to $66 million this quarter. Six Flags also reported a strong growth in guest attendance, which rose 25% from 1.3 million to 1.7 million. With that being said, would you buy SIX stock?
MasterCraft Boat Holdings
MasterCraft Boat Holdings is a leading innovator and manufacturer of recreational powerboats. Its brands include MasterCraft, NauticStar, Crest, and Aviara. And through its brands, MasterCraft has leading market share positions in three of the fastest-growing segments of the powerboat industry. These are the performance sport boats, outboard saltwater fishing and pontoon boats, and luxury day boat segments.
Earlier this month, the company reported record results for its third-quarter fiscal 2022 results. Jumping right in, MasterCraft brought in net sales of $186.7 million, up 26.3% from the prior-year period. Net income was reported to be $20.9 million, a rise of 19.2%. Accordingly, diluted net income per share was $1.13, up by 21.5%. Remarkably, the company also delivered its most profitable quarter in its history, making it the sixth consecutive record-setting quarter. In the same report, the company forecasted its net sales to be up in the 30% range year-over-year. Given the company’s growth, is MCFT stock one to watch?
Hilton Grand Vacations
Hilton Grand Vacations (HGV) is a leading global timeshare company. It operates a system of brand-name, high-quality vacation ownership resorts. The company has a reputation for delivering a consistently exceptional standard of service and provides unforgettable vacation experiences for guests and more than 710,000 owners. On May 9, HGV reported its first-quarter financials. Firstly, the company reported total revenue of $779 million for the first quarter, compared to $235 million a year earlier. Secondly, net income for the quarter was $51 million compared to a loss of $7 million year-over-year.
Diluted earnings per share for the quarter were $0.42. Moreover, member count increased for the seventh straight quarter as well, according to the company. In the company’s first-quarter report, it raised its Deferral Adjusted EBITDA range from $960 million to $990 million, from the prior range of $915 million to $935 million. Furthermore, HGV says that its EBITDA and margins are well ahead of its 2019 Pro-forma combined levels. The company’s diligent integration efforts have also enabled it to identify additional cost synergies from its Diamond Resorts International acquisition. Thus, is HGV stock worth adding to your portfolio?
Norwegian Cruise Line Holdings
Norwegian Cruise Line is one of the largest cruise lines in the world. It boasts a combined fleet of 28 ships with nearly 60,000 berths. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. These brands offer itineraries to more than 490 destinations worldwide. Furthermore, the company has nine additional ships scheduled for delivery until 2027. Earlier this month, the company posted its first-quarter financials.
Diving in, the company announced that it has become the first major cruise operator to return its entire fleet back to service. Total revenue increased to $521.9 million compared to $3.1 million a year ago thanks to the resumption of its cruises. Furthermore, the company also says that its operating cash flow was slightly positive in March and that it continues to see pricing strength for all future periods. The company’s advance ticket sales balance, including the long-term portion, increased from $418 million in the quarter to $2.2 billion as of March 31, 2022. All things considered, is NCLH stock worth investing in right now?
Finally, we have the theme park and entertainment company, SeaWorld. Known for its brands that include SeaWorld, Busch Gardens, Aquatica, Sea Rescue, and Sesame Place, the company boasts a diversified portfolio of 12 differentiated theme parks in the U.S. As the name suggests, many of the company’s theme parks showcase its zoological collection while delivering a diverse array of thrill and family-friendly rides.
On May 5, SeaWorld announced its first-quarter financial highlights. The company’s total revenue was a record $270.7 million, up 57.5% year-over-year. When compared to the first quarter of 2019, it still grew by 22.7%. Meanwhile, guest attendance was 3.4 million, an increase of 1.2 million guests or 53.7% from the first quarter of 2021. Across the board, the company appears to be showing signs of recovery that may spark the interest of investors. With that in mind, would you consider adding SEAS stock to your watchlist?