Check Out These Top Leisure Stocks To Watch Now
Whether you are bullish on the current reopening trade or skeptical due to coronavirus fears, leisure stocks remain relevant. If anything, this part of the stock market today is home to a rather crucial business in our world today. That is the business of relaxation. In a nutshell, consumers often turn to companies in the leisure industry when they are looking to spend their free time. Regardless of the state of the world, most would have additional free time on their hands. As such, it would make sense that investors are turning their attention towards some of the top leisure stocks now.
Today, consumers and investors alike are spoilt for choices when it comes to picking a lane in the leisure business. Given the vast number of time-killing activities available now, this would be the case. For instance, those who are already fully vaccinated would consider turning towards cruises and domestic travel. This would see names such as Carnival Cruise (NYSE: CCL) be in focus now.
Elsewhere, companies that offer digital means of entertainment are also gaining traction. Take Penn National Gaming (NASDAQ: PENN) for example. The company’s online sports betting services have and continue to cater to millions of members across the U.S. Across the board, leisure stocks appear to be a viable play in the stock market right now. With that in mind, could one of these four be worth investing in?
Best Leisure Stocks To Buy [Or Sell] In August 2021
- Canopy Growth Corporation (NASDAQ: CGC)
- Norwegian Cruise Line Holdings (NYSE: NCLH)
- DraftKings Inc. (NASDAQ: DKNG)
- American Airlines Group Inc. (NASDAQ: AAL)
Canopy Growth Corporation
Canopy Growth Corporation is a cannabis company that is based in Ontario, Canada. In essence, the company is a global diversified cannabis and cannabinoid-based consumer product company. It offers a high variety of products that include high-quality dried flowers, oils, edibles, and infused beverages among others. The company also has a global medical brand, Spectrum Therapeutics, that sells a range of medical products using its color-coded classification system. CGC stock currently trades at $19.07 as of 11:24 a.m. ET.
The company has just reported its first-quarter fiscal 2022 financial results today. Notably, it achieved a revenue growth of 23% for the quarter compared to a year ago at $108.7 million. Canopy cited strong double-digit growth in both cannabis and other consumer products businesses. It also maintained the No. 1 market share in the tracked Canadian recreational cannabis market amid a highly competitive landscape. Also, it had completed the acquisition of Ace Valley and Supreme Cannabis in this quarter, with commercial and operational integration progressing smoothly. Given the impressive quarter, will you consider buying CGC stock?
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Norwegian Cruise Line Holdings Ltd.
Next up, we have Norwegian Cruise Line Holdings, one of the largest cruise lines in the world by passengers. The company operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It has over 25 ships with nearly 60,000 berths. It also boasts the capacity to offer more than 490 destinations worldwide. Despite the setbacks from the pandemic, the company has nine additional ships that are scheduled for delivery through 2027. NCLH stock currently trades at $24.78 apiece as of 11:24 a.m. ET and is up by over 65% in the past year.
Like Canopy, the company also reported its quarterly financials today. The company noted that it has just reached a historic milestone in its ‘Great Cruise Comeback’ with the successful relaunch with the first ship in its fleet, Norwegian Jade, sailing the Greek Isles. The company also notes that tomorrow will mark its first cruise in the U.S. in over 500 days as Norwegian Encore sets sail from Seattle to Alaska. Given that it will recommence operations, it continues to put health and safety at the forefront with its robust, science-backed SailSAFE health and safety program. This includes a 100% vaccination policy that applies across all voyages in its three brands. With that in mind, do you think NCLH stock is a top leisure stock to buy?
DraftKings is a leisure company that focuses on daily fantasy sports contests and sports betting. Furthermore, it offers its users with products that range across daily fantasy, regulated gaming, and digital media. Also, it is one of the only U.S.-based vertically integrated sports betting operators. The company’s multi-channel platform for sports betting and gaming technologies can be found in over 50 operators in 17 countries. DKNG stock currently trades at $51.06 as of 11:25 a.m. ET.
The company reported another strong quarter today. Diving in, it posted a revenue of $298 million, increasing by 320% compared to a year ago. Monthly Unique Payers for its B2C segment also increased by 281% year-over-year. On average, 1.1 million monthly unique paying customers engaged with the company each month during the quarter. The company is also raising its fiscal year 2021 revenue guidance to a top-line of $1.29 billion, which equates to a 100% growth year-over-year. All things considered, will you buy DKNG stock?
American Airlines Group Inc.
Following that, we will be taking a look at American Airlines (AAL). In brief, the Texas-based company is a major player in the airline industry today. For a sense of scale, it is among the largest airlines globally now by fleet size and passengers carried. Through all of this, AAL boasts the capacity to run 6,700 daily flights to over 300 destinations across 50 countries. As it stands, AAL stock currently trades at $20.93 as of 11:25 a.m. ET, after gaining by over 35% year-to-date. Would it have more room to grow this year?
To better understand this, we could take a closer look at the company’s latest financial update. Late last month the company reported solid figures in its second-quarter fiscal. In it, AAL posted total revenue of $7.48 billion for the quarter, marking a significant 361% year-over-year increase. At the same time, the company also saw its net income and earnings per share double over the same period.
Sure, these figures would be in comparison to when the company was grounded during the pandemic. However, all this could indicate that AAL is prepping for the eventual return of travel and raring to go. Would this make AAL stock a top pick for you in the stock market now?