3 Leisure Stocks To Check Out Now
The stock market appears to be seeing some volatility lately due to rising inflation among other factors. Even so, leisure stocks could be worth noting in the current market. Despite the current rise in consumer prices, we are still seeing consumers flocking to in-person leisure services at elevated levels. Accordingly, with the U.S. easing its international travel restrictions, travel companies continue to gain traction as well.
For instance, we could look at Airbnb (NASDAQ: ABNB), a prominent name in the global tourism industry today. According to CEO Brian Chesky, the company’s active bookings surged by 44% since the news broke regarding the travel ban. In fact, to facilitate this uptick in international travelers, Airbnb is introducing new travel tools on its app. Earlier this week, the company announced a translation tool among other upcoming features to its app. This would be a timely addition as cross-border travel increases and stays lengthen.
However, there are signs of short-term headwinds among even some of the biggest players in the industry. Namely, the likes of Disney (NYSE: DIS) recently posted less-than-ideal figures in its latest quarterly report yesterday. Despite both its earnings and total revenue coming in below consensus estimates, Disney continues to press forward. CEO Bob Chapek reiterates that Disney remains on track to reach 230 million to 260 million Disney+ subscribers by 2024. Considering that it stands to benefit from leisure industry trends across the board, investors could see an opportunity in DIS stock now. While the industry may not be immune to current market conditions, some would argue that there remains room for growth. As such, could one of these leisure stocks be top picks in the stock market now?
Top Leisure Stocks To Buy [Or Sell] This Month
- Penn National Gaming Inc. (NASDAQ: PENN)
- Curaleaf Holdings Inc. (OTCMKTS: CURLF)
- JD.com Inc. (NASDAQ: JD)
Penn National Gaming
To begin with, we will be taking a look at Penn National Gaming or PENN for short. For the most part, the company primarily operates via one of the largest regional gaming footprints in the U.S. The likes of which consist of a wide array of casinos, racetracks, and related online sports betting offerings. After the initial onslaught of the pandemic, PENN pivoted hard towards its online gaming division. As a result, its Barstool live sports betting app currently serves over 24 million users. Even after its recent decline, PENN stock is still holding on to gains of over 600% since its Covid era low.
Overall, the current movement in the company’s shares could be due to its mixed results for the quarter. In its third fiscal quarter report last week, the company beat revenue estimates but fell short on earnings per share projections. To highlight, PENN raked in a total revenue of $1.51 billion for the quarter, marking a sizable 33% year-over-year increase. Not to mention, the company also acquired theScore, Canada’s leading sports media app in the quarter. CEO Jay Snowden noted that the return of football season continues to generate strong momentum in PENN’s Barstool Sportsbook service.
After considering all of this, the real question now is whether PENN stock is worth investing in now. If anything, Bank of America (NYSE: BAC) seems to believe so. In response to the recent sell-off in PENN stock, the firm reiterated its Buy rating on the stock. According to BAC, the company’s media platform remains a growth factor even “in a worst-case scenario”. With all that said, could PENN stock be a buy for you?
Following that, we will be taking a look at Curaleaf Holdings. In brief, Curaleaf is an international provider of cannabis-based consumer products. On one hand, the company’s U.S. operations currently span 23 states with 111 dispensaries and 25 cultivation sites on hand. On the other hand, Curaleaf International is the largest vertically integrated cannabis company in Europe, according to Curaleaf’s estimates. Now, when it comes to investing in leisure, the marijuana industry is an emerging name to consider.
After all, many have and continue to turn to cannabis amidst the current pandemic for recreational purposes. At the same time, Curaleaf does not appear to be resting on its laurels just yet in this blooming market. For starters, the company posted its latest quarterly earnings figures last week. In detail, Curaleaf delivered a record revenue of $317 million for the quarter, marking a solid 74% leap year-over-year. The company cites good execution of its strategic initiatives as a key contributor to this quarter’s performance.
Moreover, Curaleaf is also expanding its presence in the U.S. now. Alongside its quarterly earnings, the company revealed plans to acquire Tryke Companies, a multi-state cannabis operator, for $286 million. Through the current deal, Curaleaf will be acquiring Tryke’s integrated cultivation, processing, and retail assets in Arizona, Nevada, and Utah. Pair all this with news of a potential Republican-led bill to legalize and regulate marijuana nationwide and CURLF stock could be in focus. Would you consider adding it to your watchlist now?
Another form of leisure in our tech-reliant world today would be e-commerce. As people shop from the comfort of their homes, companies like JD continue to thrive. For the uninitiated, JD is a prominent name in the Chinese digital retail scene today. Through its online shopping platform, the company caters to over 531 million annual active customers. With JD set to report its third-quarter earnings next week, could JD stock be worth keeping an eye on now?
For one thing, JD does not seem to be slowing down anytime soon. In a recent interview with CNBC, the company revealed plans to increase its overseas investments. Xin Lijun, JD’s newly appointed CEO noted that said investments could be “on warehousing, logistics, or supply chains”. Among the notable locations the company is considering are Europe and Vietnam. Given its success in the Chinese market, JD’s plans to go international would be a strategic one.
Speaking of the Chinese market, JD’s massive Singles Day sales in the region is currently underway. Seeing as the gargantuan shopping event sells goods exceeding that of Black Friday and Cyber Monday combined, JD would be busy. By and large, JD appears to be firing on all cylinders now. Could all this make JD stock worth investing in for you?