3 Stocks Set to Spring

Spring is in the air, well at least it should be. But as we gradually start to warm up, more and more Americans will be taking a good look at their lawns. Heading out to the garage to dust off their lawnmowers or fertilizers. Motorcycles are coming out of storage and little leaguers everywhere are breaking in their mitts.

And as the April showers give way to the summer heat we really start to ramp up our outdoor activities. That got me thinking, are there profits to be made in some of these seasonal activities?

Seasonality and the Recession

Investors are well aware that seasonal businesses can't simply be bought just before spring and sold during the dog days of summer for a nice profit. But when you factor in the recession, there could be some great opportunities out there.

A year ago, the worst economy many of us have ever seen was fresh in our minds. So, we milked another year out of the lawnmower. Maybe you skipped the fertilizer last summer. And that was probably the second or third time we had to skimp on some discretionary summer expenditures.

Retail Spending Up

Well, we just saw the ninth consecutive month of growing spending at retailers. So, consumers are ramping up spending and guess what we that means. There is plenty of pent up demand from the previous few summers that needs to be met and it looks like this is the season to unwind that demand.

3 Stocks to Love this Summer

Of course the sales figures will lag months after the actual spending, but now is the time to get in early and reap the benefits of spring and summer spending. Here are 3 stocks that could see a nice jump in sales.

Scotts Miracle-Gro Co (SMG - Snapshot Report) is the world's largest brand when it comes to consumer products for lawn and garden care.

After a slight dip in earnings expectations a few months ago, analysts raised forecasts for fiscal 2011 and 2012. The Zacks Consensus Estimate for this year is at $3.64, which is a 7% growth rate. Forecasts for 2012 are averaging $4.13, a 14% growth rate.

Assuming no changes in spending, that is still a nice trajectory. But if they see a jump in sales, look for those earnings to keep rising for this Zacks #2 Rank (Buy).

Johnson Outdoors (JOUT - Snapshot Report) is an outdoor recreation company with several brands. They offers a wide variety of products including camping gear, kayaks, fish finders and many other products for just about any outdoor activity.

Shares already have a Zacks #1 Rank (Strong Buy) as analysts are expecting EPS to double this year and increase another 31% in fiscal 2012. They are already seeing sales rebound and can capitalize on that after slashing debt and operating expenses in recent years.

The Toro Company (TTC - Snapshot Report) makes turf and landscaping equipment. Their lawnmowers and irrigation systems are used on residential homes, commercial uses and maintain golf courses and sports fields.

Right now analysts are looking for $1.61 per share when Toro reports in May. That represents a 20% year over year improvement. For the fiscal 2011 analysts are calling for a 24% increase in EPS, to $3.46.

This Zacks #1 Rank (Strong Buy) should reap the benefits as home and business owners look to reinvest in their equipment.

And There are Many More

These are just a few examples of how you can profit from pent up demand, which could be exacerbated by seasonality. Take a look at your habits. More likely to take a vacation this summer? Buy a new toy? Who knows, the best investment idea may be right in front of you.

Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Home Run Investor service

Read the full analyst report on TTC

Read the full analyst report on JOUT

Read the full analyst report on SMG