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Leisure Industry Shows Strength: 3 Stocks Set to Ride the Upswing
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The Zacks Leisure and Recreation Services industry has been benefiting from optimized business processes, consistent partnerships and digital initiatives. Robust demand for concerts and strong bookings for cruise operators continue to support the industry. Firms such as Trip.com Group Limited (TCOM - Free Report) , Planet Fitness, Inc. (PLNT - Free Report) and Travel + Leisure Co. (TNL - Free Report) are likely to benefit from the trends mentioned above.
Industry Description
The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, and theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts. Many companies are engaged in hospitality and related businesses. A few industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, which is highly dependent on business cycles, is driven by a healthy labor market, rising wages and growing disposable income.
4 Trends Shaping the Leisure & Recreation Services Industry's Future
Robust Demand Helps Cruise Operators: The cruise industry is benefiting from strong demand for cruising and accelerating booking volumes. The industry is benefiting from solid bookings related to North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry.
From Theme Park Operators & Live Entertainment Benefit Robust Demand: The theme park industry is benefiting from robust demand. Theme park operators have been gaining from improved visitation. Consumer spending at theme parks continues to rise. The theme park sector is experiencing a boost from integrating technology, particularly through augmented and virtual reality. Live entertainment firms have benefited from pent-up live event demand and robust ticket sales.
Digital Tools Improving Engagement and Cost Control: Technology is playing a growing role in how leisure services are delivered and managed. Online booking systems, mobile apps and personalized promotions are making it easier for customers to engage more frequently. At the same time, data analytics and automation are helping businesses manage staffing, scheduling and capacity more efficiently, supporting margins in a challenging labor environment. Overall, steady consumer interest, smarter monetization strategies and increased use of technology continue to strengthen the U.S. Leisure and Recreation Services industry.
Strong Revenue Upside From Premium and Membership Models: Leisure operators are finding new ways to increase revenue per customer by offering premium options, bundled packages and recurring memberships. Enhanced experiences, exclusive access and loyalty-based pricing allow companies to charge more without significantly impacting demand. These strategies help protect profitability while also building longer-term customer relationships.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #104, which places it in the top 43% of 244 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright, near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in the group’s earnings growth potential.
Before we present a few stocks that investors can consider, let us analyze the industry’s recent stock-market performance and valuation picture.
Industry Outperforms the Sector
The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite and its sector in the past year. Stocks in the industry have collectively grown 8.7% in the past year compared with the broader sector’s growth of 4.2%. The S&P 500 has risen 19.7% in the said time frame.
1-Year Price Performance
Valuation
Based on the forward 12-month P/S, the industry trades at 2.38X compared with the S&P 500’s 5.67X and the sector’s 2.35X. In the past five years, the industry has traded as high as 6.37X and as low as 1.68X, the median being 2.22X, as the charts show.
P/S Ratio (F12M) Compared With S&P
3 Leisure & Recreation Services Stocks to Keep an Eye On
Trip.com Group: TCOM continues to benefit from resilient global travel demand, as travelers remain eager to explore destinations and spend on experiences, particularly in cross-border travel. The company is strengthening its competitive position by integrating artificial intelligence across the travel journey, improving personalization, efficiency and overall customer engagement.
Shares of this Zacks Rank #1 (Strong Buy) company have declined 4.6% in the past year. In the past 60 days, earnings estimates for 2026 have increased to $4.24 from $4.18. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: TCOM
Travel + Leisure: TNL is benefiting from strong execution and steady demand, as shown by its consistent earnings outperformance and sustained strength in vacation ownership pricing. The company’s multi-brand strategy is also supporting growth, with new partnerships expanding its customer reach and enhancing brand appeal, while disciplined operations and employee execution continue to drive long-term shareholder value.
Shares of this Zacks Rank #2 (Buy) company have jumped 41.3% in the past year. In fiscal 2026, TNL’s sales and earnings are expected to witness year-over-year growth of 4.1% and 16.8%, respectively.
Price & Consensus: TNL
Planet Fitness: The company's prospects are benefiting from solid franchise growth, higher equipment sales and robust corporate-owned club performance. The company reported 35 new club openings in the third quarter of 2025 and ended the period with 2,795 system-wide locations. Also, the focus on digital transformation efforts to enhance member engagement, operational efficiency and marketing precision bodes well.
Shares of this Zacks Rank #2 company have declined 5% in the past year. In 2026, PLNT’s sales and earnings are expected to witness year-over-year growth of 11.1% and 17.1%, respectively.
Price & Consensus: PLNT
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Leisure Industry Shows Strength: 3 Stocks Set to Ride the Upswing
The Zacks Leisure and Recreation Services industry has been benefiting from optimized business processes, consistent partnerships and digital initiatives. Robust demand for concerts and strong bookings for cruise operators continue to support the industry. Firms such as Trip.com Group Limited (TCOM - Free Report) , Planet Fitness, Inc. (PLNT - Free Report) and Travel + Leisure Co. (TNL - Free Report) are likely to benefit from the trends mentioned above.
Industry Description
The Zacks Leisure and Recreation Services industry comprises various recreation providers, such as cruise, entertainment and media owners, golf-related leisure and entertainment venue businesses, and theme park makers, resort operators and event organizers. Some industry players have ski and sports businesses, while some operate health and wellness centers onboard cruise ships and at destination resorts. Many companies are engaged in hospitality and related businesses. A few industry participants also provide weight management products and services. These companies primarily thrive on overall economic growth, which fuels consumer demand for products. Demand, which is highly dependent on business cycles, is driven by a healthy labor market, rising wages and growing disposable income.
4 Trends Shaping the Leisure & Recreation Services Industry's Future
Robust Demand Helps Cruise Operators: The cruise industry is benefiting from strong demand for cruising and accelerating booking volumes. The industry is benefiting from solid bookings related to North American and European sailings. Also, strong pricing (on closer-in-demand) and solid onboard spending bode well for the industry.
From Theme Park Operators & Live Entertainment Benefit Robust Demand: The theme park industry is benefiting from robust demand. Theme park operators have been gaining from improved visitation. Consumer spending at theme parks continues to rise. The theme park sector is experiencing a boost from integrating technology, particularly through augmented and virtual reality. Live entertainment firms have benefited from pent-up live event demand and robust ticket sales.
Digital Tools Improving Engagement and Cost Control: Technology is playing a growing role in how leisure services are delivered and managed. Online booking systems, mobile apps and personalized promotions are making it easier for customers to engage more frequently. At the same time, data analytics and automation are helping businesses manage staffing, scheduling and capacity more efficiently, supporting margins in a challenging labor environment. Overall, steady consumer interest, smarter monetization strategies and increased use of technology continue to strengthen the U.S. Leisure and Recreation Services industry.
Strong Revenue Upside From Premium and Membership Models: Leisure operators are finding new ways to increase revenue per customer by offering premium options, bundled packages and recurring memberships. Enhanced experiences, exclusive access and loyalty-based pricing allow companies to charge more without significantly impacting demand. These strategies help protect profitability while also building longer-term customer relationships.
Zacks Industry Rank Indicates Bright Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. It carries a Zacks Industry Rank #104, which places it in the top 43% of 244 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bright, near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries results from a positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in the group’s earnings growth potential.
Before we present a few stocks that investors can consider, let us analyze the industry’s recent stock-market performance and valuation picture.
Industry Outperforms the Sector
The Zacks Leisure and Recreation Services industry has underperformed the Zacks S&P 500 composite and its sector in the past year. Stocks in the industry have collectively grown 8.7% in the past year compared with the broader sector’s growth of 4.2%. The S&P 500 has risen 19.7% in the said time frame.
1-Year Price Performance
Valuation
Based on the forward 12-month P/S, the industry trades at 2.38X compared with the S&P 500’s 5.67X and the sector’s 2.35X. In the past five years, the industry has traded as high as 6.37X and as low as 1.68X, the median being 2.22X, as the charts show.
P/S Ratio (F12M) Compared With S&P
3 Leisure & Recreation Services Stocks to Keep an Eye On
Trip.com Group: TCOM continues to benefit from resilient global travel demand, as travelers remain eager to explore destinations and spend on experiences, particularly in cross-border travel. The company is strengthening its competitive position by integrating artificial intelligence across the travel journey, improving personalization, efficiency and overall customer engagement.
Shares of this Zacks Rank #1 (Strong Buy) company have declined 4.6% in the past year. In the past 60 days, earnings estimates for 2026 have increased to $4.24 from $4.18. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: TCOM
Travel + Leisure: TNL is benefiting from strong execution and steady demand, as shown by its consistent earnings outperformance and sustained strength in vacation ownership pricing. The company’s multi-brand strategy is also supporting growth, with new partnerships expanding its customer reach and enhancing brand appeal, while disciplined operations and employee execution continue to drive long-term shareholder value.
Shares of this Zacks Rank #2 (Buy) company have jumped 41.3% in the past year. In fiscal 2026, TNL’s sales and earnings are expected to witness year-over-year growth of 4.1% and 16.8%, respectively.
Price & Consensus: TNL
Planet Fitness: The company's prospects are benefiting from solid franchise growth, higher equipment sales and robust corporate-owned club performance. The company reported 35 new club openings in the third quarter of 2025 and ended the period with 2,795 system-wide locations. Also, the focus on digital transformation efforts to enhance member engagement, operational efficiency and marketing precision bodes well.
Shares of this Zacks Rank #2 company have declined 5% in the past year. In 2026, PLNT’s sales and earnings are expected to witness year-over-year growth of 11.1% and 17.1%, respectively.
Price & Consensus: PLNT
