You can be on Entrepreneur’s cover!

3 Hot Outdoor Recreation Stocks to Buy This Summer Many of these stocks have been strong performers throughout the pandemic and could be ready for an additional move to the upside, especially if they d...

By Sean Sechler

entrepreneur daily

This story originally appeared on MarketBeat

Depositphotos.com contributor/Depositphotos.com via MarketBeat

There are always certain seasonal trends that impact markets throughout the year, and that is certainly the case during the summer months. Although the market tends to see less volume during this time period, there are still plenty of great buying opportunities that can reward investors who are cognizant of these trends. Some classic examples of stocks that are usually hot in the summer include companies in the solar, travel, and outdoor recreation industries.

With the weather warming up and America's love for the great outdoors boosted by the pandemic, the companies offering outdoor recreation products and services could be in for a big quarter. Many of these stocks have been strong performers throughout the pandemic and could be ready for an additional move to the upside, especially if they deliver strong earnings this quarter. If you are interested in potentially taking advantage of summer seasonality, here are 3 hot outdoor recreation stocks to consider buying.

Camping World Holdings (NYSE:CWH)

One of the most popular activities that Americans love to partake in each summer is hitting the road in their recreational vehicles, which is a strong reason to consider adding shares of Camping World Holdings. It's a major retailer of RV and related products and services and a great reopening play to consider if you are bullish on the prospects of people heading out to travel around our beautiful country after the pandemic. Camping World Holdings offers recreational vehicles for sale, camping gear, RV maintenance and repair, outdoor products, and more, which means it should see an uptick in sales this summer as RV enthusiasts prepare for their voyages.

The RV industry was hot in 2020, and RV shipments are projected to reach 575,000 units in 2021, which would break the previous record by 14% and represent a 33.8% increase from the 2020 total. Some of that growth is showing up in Camping World's earnings, as the company's Q1 revenue increased by $530 million to $1.5 billion. What's also great about Camping World Holdings is the fact that the stock offers a 2.49% dividend yield, and the company just boosted the payout by 8.69% in April.

Pool Corp (NASDAQ:POOL)

Nothing says summer like heading outside to relax at the pool, and a company like Pool Corp is the perfect example of an outdoor recreation stock that might benefit from the hottest months of the year. It's one of the world's largest distributors of pool supplies, equipment, and related leisure products and a company that has certainly benefitted from a strong housing market and the expansion of work-from-home trends. Investors should anticipate more good things to come for Pool Corp this year as these trends continue boosting its sales, and the summer quarter could end up providing the best earnings results of the year for the outdoor recreation business.

Investors should note that this is a company with a healthy backlog and the fact that commercial customers will be spending again as public pools and travel reopens could add even more upside for the stock. Pool Corp reported record net sales for Q1 with overall growth of 57% year-over-year and a record Q1 diluted EPS of $2.42, up 223% year-over-year. The company also increased its 2021 earnings guidance, which is another strong signal to shareholders that the company is firing on all cylinders.

Acushnet Holdings Corp (NYSE:GOLF)

With millions of people tuning into professional golf these days and the sport receiving a nice boost of new activity thanks to social distancing measures, adding shares of a company like Acushnet Holdings Corp this summer makes a lot of sense. It's a company that designs, develops, manufactures, and distributes golf products and owns some of the most well-known and respected brands in the sport. For example, the company's Titleist and FootJoy brands are often considered the gold standard in golf clubs, balls, and footwear.

We know that plenty of golfers head outside to play during the summer months, and there are lots of professional golf tournaments taking place that could lead to increased exposure for Achushnet's products. The stock has been hot in 2021 and is up over 22% year-to-date, which means it's an outdoor recreation stock carrying some momentum at this time. The company had a very strong Q1 with sales of $580.9 million, up 42% year-over-year, and Adjusted EBITDA of $135.3 million, up 156% year-over-year. The bottom line here is that Acushnet Holdings is one of the best outdoor recreation stocks to buy this summer, especially given how the golf industry's growth has been accelerating.

Featured Article: Why do companies issue stock splits?

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

James Clear Explains Why the 'Two Minute Rule' Is the Key to Long-Term Habit Building

The hardest step is usually the first one, he says. So make it short.

Side Hustle

He Took His Side Hustle Full-Time After Being Laid Off From Meta in 2023 — Now He Earns About $200,000 a Year: 'Sweet, Sweet Irony'

When Scott Goodfriend moved from Los Angeles to New York City, he became "obsessed" with the city's culinary offerings — and saw a business opportunity.

Living

Get Your Business a One-Year Sam's Club Membership for Just $14

Shop for office essentials, lunch for the team, appliances, electronics, and more.

Business News

Microsoft's New AI Can Make Photographs Sing and Talk — and It Already Has the Mona Lisa Lip-Syncing

The VASA-1 AI model was not trained on the Mona Lisa but could animate it anyway.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.