Could These Be The Best Leisure Stocks To Buy Ahead Of July 2021?
Given the current rebound in the broader stock market, investors could be looking for more long-term growth buys right now. While the stock market took a breather last week, leisure stocks could see some action pretty soon. First off, that’s because summer is here, and consumers are likely looking for ways to enjoy the season. Accordingly, this would attract more attention towards the leisure industry from consumers and investors alike. On top of that, the options for leisure activities continue to broaden as domestic travel resumes. Could now be a good time to jump on the reopening trade?
If anything, CNBC’s Jim Cramer did highlight current consumer spending trends being in favor of leisure products. Back in May, the Mad Money host cited Walmart’s (NYSE: WMT) earnings report showing an uptick in consumer spending on “groceries, apparel, and leisure products”. Elsewhere, investors could also be looking for the best marijuana stock of 2021. This would be the case as a total of 19 states have already legalized marijuana. In that respect, companies such as Canopy Growth (NASDAQ: CGC) and Cronos Group (NASDAQ: CRON) would be in the spotlight. By and large, it seems that the current market for leisure stocks appears to be gaining momentum all-round. With all this in mind, here are five diverse leisure stocks to watch in the stock market this week.
Top Leisure Stock To Buy [Or Sell] This Week
- Vail Resorts Inc. (NYSE: MTN)
- American Eagle Outfitters Inc. (NYSE: AEO)
- Pinterest Inc. (NYSE: PINS)
- Tilray Inc. (NASDAQ: TLRY)
- MGM Resorts International (NYSE: MGM)
Vail Resorts Inc.
To begin with, we will be taking a look at Vail Resorts Inc. For the uninitiated, Vail operates 37 destination mountain resorts and regional ski areas across the U.S., Canada, and Australia. Aside from that, the company also manages a collection of hotels under its RockResorts subsidiary. Sure, Vail’s core skiing model would experience a slowdown amidst the toasty summertime. However, with the eventual reopening of the economy, the upcoming winter season could be a busy one for Vail. As such, it would not surprise me to see investors eyeing MTN stock, which is up by over 140% since its pandemic-era low.
Vail also reported solid figures across the board in its recent quarter fiscal, surpassing pre-pandemic levels. In detail, the company raked in total revenue of $889.08 million for the quarter. If that wasn’t enough, Vail also saw significant year-over-year jumps of 80% in net income. CEO Rob Katz also highlighted that the ongoing sales of Vail’s Epic Australia Passes are up by 43% year-to-date compared to 2019 levels. All things considered, will you be adding MTN stock to your portfolio?
American Eagle Outfitters Inc.
Another top player in the leisure industry now would be American Eagle Outfitters Inc. (AEO). In brief, AEO offers consumers high-quality and trendy clothing as well as personal care products. In terms of scale, the company operates stores across the U.S., Canada, Mexico, and Hong Kong. Additionally, it also ships its wares to 81 countries worldwide via its e-commerce services. More importantly, investors appear to be flocking towards AEO stock this year given its year-to-date gains of over 80%.
Evidently, the company’s momentum continues to grow this week as its shares are up by over 8%. A possible contributing factor to this could be a rosy view on AEO stock from Jim Cramer. According to Cramer, AEO would be a viable play as a “low-effort stock” that investors can get behind in the current market. Also, the company recently announced that it would be increasing its dividend by 31%, outlining the current strength in its business. Seeing as investors are bullish on AEO stock now, would you consider it a top buy?
Next up, we have social media company Pinterest. Now, social media remains one of the key ways people spend their free time. Companies like Pinterest saw their active user count skyrocket over the past year amidst the current pandemic. While in-person leisure services continue to reopen, investors may not want to overlook social media giants like Pinterest just yet. This is mainly because the company is making strategic plays to make the most of its pandemic-fueled momentum now.
The company’s services provided a means for people to compile ideas and concepts while homebound. Now that more of those ideas can be implemented, I could see users continue to rely on its platform. In line with this, Pinterest recently expanded its shopping features towards the Australian, Canadian, French, and German markets. Ideally, this move serves to expand its addressable market while further monetizing its platform. Notably, PINS stock is currently looking at gains of over 203% in the past year. Would you say that all this gives it more room to run this year?
Tilray would be another major player to consider in the leisure-focused market now. After all, as some consumers may not be keen to travel just yet, weed would be a safe way to relax at home. This would be where Tilray’s industry-leading portfolio of cannabis-lifestyle goods would come into play. Similarly, investors appear to be turning to TLRY stock which is up by over 90% year-to-date. Would now be an ideal time to jump on the Tilray train?
Well, financial services company Cantor Fitzgerald seems to be leaning towards a yes. Earlier this month, the firm hit TLRY stock with an Overweight rating and a price target of $22. This would mark a potential upside of 26% from its current price of $17.43 a share as of Tuesday’s closing bell. Particularly, Cantor analyst Pablo Zuanic cites the company’s recent successful merger with fellow industry giant Aphria for this update. Following that, Tilray also announced the launch of its latest medical cannabis brand, Symbios. With the company seemingly kicking into high gear, would you consider investing in TLRY stock?
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MGM Resorts International
Topping off our list today is MGM Resorts International. For some context, MGM is a Las Vegas-based hospitality company. Given its massive hospitality and entertainment portfolio, MGM stock would be another leisure stock to know now. Through its 31 unique hotel and gaming locations, the company runs some of the most recognizable brands in the industry. As a result, it would stand to benefit from the current tailwinds among domestic travelers in the U.S.
Furthermore, there is also the factor of its BetMGM sports betting and online gaming venture to consider. The company strategically shifted its focus towards this business segment last year, appealing to pandemic-fueled online betting trends. Now, MGM stock is up by over 125% in the past year.
Regardless, MGM continues to find ways to bolster its increasingly popular gaming division. This is evident as the company is now working with payment processing solutions provider Shift4 (NYSE: FOUR). In theory, Shift4’s end-to-end encrypted payment solutions would provide another layer of security to MGM’s online betting operations. With the company potentially riding both pandemic-related and reopening tailwinds now, will you be buying MGM stock?