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4 Stocks to Buy as the Leisure & Recreation Industry Looks Promising
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The Zacks Leisure and Recreation Products industry is benefiting from a positive fitness product sales trend, driven by growing health and fitness awareness. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Amer Sports, Inc. (AS - Free Report) , Pool Corporation (POOL - Free Report) , Acushnet Holdings Corp. (GOLF - Free Report) and Topgolf Callaway Brands Corp. (MODG - Free Report) are likely to benefit from the trends mentioned above.
Industry Description
The Zacks Leisure and Recreation Products industry comprises companies that provide amusement and recreational products, swimming pools, marine products, golf courses, boat repair and maintenance services, and other ancillary services. The services include indoor and outdoor storage, marine, boat rentals and personal watercraft. Some industry participants manufacture outdoor equipment and apparel for climbing, mountaineering, backpacking and skiing. A few companies also provide connected fitness products and subscriptions for multiple household users. Industry players primarily thrive on overall economic growth, which fuels consumer demand for products. The demand, highly dependent on business cycles, is driven by a healthy labor market, rising wages and growing disposable income.
3 Trends Shaping the Future of the Leisure & Recreation Products Industry
Booming Golf Business: The U.S. golf business is experiencing a renewed growth cycle, driven by expanding participation, diversified formats and stronger engagement across age groups. Traditional on-course play has stabilized while off-course experiences, such as technology-enabled driving ranges and entertainment-focused venues, are attracting younger and more casual consumers, broadening the sport’s appeal.
Equipment demand is also benefiting from higher play frequency, with golfers upgrading clubs, balls and accessories more often than in past cycles. At the same time, innovation in fitting, data analytics and immersive experiences is raising spending per participant. Topgolf Callaway is well-positioned to capture this momentum by serving both traditional golfers and new entrants, supporting a more resilient and diversified golf ecosystem.
Robust Demand for Fitness-Related Products: The demand for fitness-related products in the United States has been strong, driven by growing health awareness, lifestyle changes and a focus on personal well-being. Consumers continue to invest in home workout equipment, wearable fitness technology and subscription-based fitness programs. The rise of digital fitness platforms and at-home workout solutions has fueled interest, especially among those seeking convenience and flexibility.
Connected, Tech-Enabled Products Are Redefining Engagement: Technology is becoming a core differentiator across leisure and recreation products. Smart fitness equipment, app-enabled gear and subscription-linked platforms are blurring the line between physical products and digital experiences. Peloton has shown how recurring software, content and community features can extend customer lifetime value beyond the initial hardware sale. From now on, manufacturers are investing in sensors, AI-driven personalization and data analytics to deepen engagement, improve outcomes and create more sticky ecosystems, rather than relying on one-time purchases.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Products industry is grouped within the broader Consumer Discretionary sector.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects.
The Leisure and Recreation Products industry currently holds a Zacks Industry Rank of #110, placing it in the top 45% of more than 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries results from the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, analysts are gaining confidence in this group’s earnings growth potential.
Before we present a few stocks from the industry that you may want to buy, let us look at the industry’s recent stock market performance and valuation picture.
Industry Underperforms the S&P 500
The Zacks Leisure and Recreation Products industry has underperformed the Zacks S&P 500 composite and its sector in the past year. Stocks in the industry have collectively declined 2.2% against the S&P 500’s rise of 18.3%. The Zacks Consumer Discretionary sector has rallied 2.8% in the same time frame.
1-Year Price Performance
Valuation
On the basis of forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 21.4X compared with the S&P 500’s 23.11X and the sector’s 18.45X. In the past five years, the industry has traded as high as 37.40X and as low as 13.25X, the median being 20.67X, as the charts show.
Forward Price-to-Earnings Ratio Compared With S&P 500
4 Leisure & Recreation Products Stocks to Watch
Topgolf Callaway: The company saw a clear inflection in the Topgolf business in third-quarter 2025 as value-driven initiatives sharply boosted traffic, particularly within its core 1-2 bay customer segment that represents about 80% of revenues. High-teens traffic growth helped return same-venue sales to positive territory for the first time in several quarters, driven by targeted offers like Sunday Funday and half-off golf on weekdays that broadened accessibility without hurting brand perception. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MODG’s 2026 loss estimate has narrowed in the past 60 days. The MODG stock has soared 48.9% in the past six months.
Price & Consensus: MODG
Amer Sports: The company is being aided by strong demand for its premium, highly technical brands, which are gaining share in resilient sports and outdoor markets worldwide. Growth is being led by exceptional Salomon footwear momentum, a reacceleration at Arc'teryx across channels and steady contributions from Wilson Tennis 360 and Winter Sports Equipment, positioning the company well within one of the healthiest segments of the global consumer market.
Shares of this Zacks Rank #2 (Buy) company have declined 3.2% in the past six months. AS’ earnings per share are likely to witness growth of 22% year over year.
Price & Consensus: AS
Acushnet Holdings: The company is benefiting from strong global golf participation, solid demand for Titleist golf balls and the successful launch of new T-Series irons, which together drove growth across all segments. Its focus on innovation, premium quality and fitting services is resonating with golfers, supporting both sales momentum and profitability for Acushnet.
This Zacks Rank #2 company’s 2026 earnings are expected to witness a year-over-year increase of 7.1%. GOLF stock has risen 11.5% in the past six months.
Price & Consensus: GOLF
Pool: The company is likely to benefit from steady maintenance demand, healthy remodeling activity and an expanding distribution footprint. Also, the ongoing enhancement of its digital capabilities, driven by the broader adoption of the POOL360 platform, has further strengthened growth momentum.
This Zacks Rank #2 company’s 2026 earnings are expected to witness a year-over-year increase of 6.6%. POOL stock has declined 20.3% in the past six months.
Price & Consensus: POOL
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4 Stocks to Buy as the Leisure & Recreation Industry Looks Promising
The Zacks Leisure and Recreation Products industry is benefiting from a positive fitness product sales trend, driven by growing health and fitness awareness. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Amer Sports, Inc. (AS - Free Report) , Pool Corporation (POOL - Free Report) , Acushnet Holdings Corp. (GOLF - Free Report) and Topgolf Callaway Brands Corp. (MODG - Free Report) are likely to benefit from the trends mentioned above.
Industry Description
The Zacks Leisure and Recreation Products industry comprises companies that provide amusement and recreational products, swimming pools, marine products, golf courses, boat repair and maintenance services, and other ancillary services. The services include indoor and outdoor storage, marine, boat rentals and personal watercraft. Some industry participants manufacture outdoor equipment and apparel for climbing, mountaineering, backpacking and skiing. A few companies also provide connected fitness products and subscriptions for multiple household users. Industry players primarily thrive on overall economic growth, which fuels consumer demand for products. The demand, highly dependent on business cycles, is driven by a healthy labor market, rising wages and growing disposable income.
3 Trends Shaping the Future of the Leisure & Recreation Products Industry
Booming Golf Business: The U.S. golf business is experiencing a renewed growth cycle, driven by expanding participation, diversified formats and stronger engagement across age groups. Traditional on-course play has stabilized while off-course experiences, such as technology-enabled driving ranges and entertainment-focused venues, are attracting younger and more casual consumers, broadening the sport’s appeal.
Equipment demand is also benefiting from higher play frequency, with golfers upgrading clubs, balls and accessories more often than in past cycles. At the same time, innovation in fitting, data analytics and immersive experiences is raising spending per participant. Topgolf Callaway is well-positioned to capture this momentum by serving both traditional golfers and new entrants, supporting a more resilient and diversified golf ecosystem.
Robust Demand for Fitness-Related Products: The demand for fitness-related products in the United States has been strong, driven by growing health awareness, lifestyle changes and a focus on personal well-being. Consumers continue to invest in home workout equipment, wearable fitness technology and subscription-based fitness programs. The rise of digital fitness platforms and at-home workout solutions has fueled interest, especially among those seeking convenience and flexibility.
Connected, Tech-Enabled Products Are Redefining Engagement: Technology is becoming a core differentiator across leisure and recreation products. Smart fitness equipment, app-enabled gear and subscription-linked platforms are blurring the line between physical products and digital experiences. Peloton has shown how recurring software, content and community features can extend customer lifetime value beyond the initial hardware sale. From now on, manufacturers are investing in sensors, AI-driven personalization and data analytics to deepen engagement, improve outcomes and create more sticky ecosystems, rather than relying on one-time purchases.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Products industry is grouped within the broader Consumer Discretionary sector.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright near-term prospects.
The Leisure and Recreation Products industry currently holds a Zacks Industry Rank of #110, placing it in the top 45% of more than 244 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
The industry’s position in the top 50% of the Zacks-ranked industries results from the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, analysts are gaining confidence in this group’s earnings growth potential.
Before we present a few stocks from the industry that you may want to buy, let us look at the industry’s recent stock market performance and valuation picture.
Industry Underperforms the S&P 500
The Zacks Leisure and Recreation Products industry has underperformed the Zacks S&P 500 composite and its sector in the past year. Stocks in the industry have collectively declined 2.2% against the S&P 500’s rise of 18.3%. The Zacks Consumer Discretionary sector has rallied 2.8% in the same time frame.
1-Year Price Performance
Valuation
On the basis of forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 21.4X compared with the S&P 500’s 23.11X and the sector’s 18.45X. In the past five years, the industry has traded as high as 37.40X and as low as 13.25X, the median being 20.67X, as the charts show.
Forward Price-to-Earnings Ratio Compared With S&P 500
4 Leisure & Recreation Products Stocks to Watch
Topgolf Callaway: The company saw a clear inflection in the Topgolf business in third-quarter 2025 as value-driven initiatives sharply boosted traffic, particularly within its core 1-2 bay customer segment that represents about 80% of revenues. High-teens traffic growth helped return same-venue sales to positive territory for the first time in several quarters, driven by targeted offers like Sunday Funday and half-off golf on weekdays that broadened accessibility without hurting brand perception. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MODG’s 2026 loss estimate has narrowed in the past 60 days. The MODG stock has soared 48.9% in the past six months.
Price & Consensus: MODG
Amer Sports: The company is being aided by strong demand for its premium, highly technical brands, which are gaining share in resilient sports and outdoor markets worldwide. Growth is being led by exceptional Salomon footwear momentum, a reacceleration at Arc'teryx across channels and steady contributions from Wilson Tennis 360 and Winter Sports Equipment, positioning the company well within one of the healthiest segments of the global consumer market.
Shares of this Zacks Rank #2 (Buy) company have declined 3.2% in the past six months. AS’ earnings per share are likely to witness growth of 22% year over year.
Price & Consensus: AS
Acushnet Holdings: The company is benefiting from strong global golf participation, solid demand for Titleist golf balls and the successful launch of new T-Series irons, which together drove growth across all segments. Its focus on innovation, premium quality and fitting services is resonating with golfers, supporting both sales momentum and profitability for Acushnet.
This Zacks Rank #2 company’s 2026 earnings are expected to witness a year-over-year increase of 7.1%. GOLF stock has risen 11.5% in the past six months.
Price & Consensus: GOLF
Pool: The company is likely to benefit from steady maintenance demand, healthy remodeling activity and an expanding distribution footprint. Also, the ongoing enhancement of its digital capabilities, driven by the broader adoption of the POOL360 platform, has further strengthened growth momentum.
This Zacks Rank #2 company’s 2026 earnings are expected to witness a year-over-year increase of 6.6%. POOL stock has declined 20.3% in the past six months.
Price & Consensus: POOL
