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4 Top Picks in Leisure & Recreation as Industry Outlook Brightens
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The Zacks Leisure and Recreation Products industry is benefiting from a positive trend in fitness product sales, driven by growing health and fitness awareness. Product innovation, premium offerings and expanding e-commerce channels are further driving demand and supporting growth. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Johnson Outdoors Inc. (JOUT - Free Report) , Malibu Boats, Inc. (MBUU - Free Report) , MasterCraft Boat Holdings, Inc. (MCFT - Free Report) and American Outdoor Brands, Inc. (AOUT - 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.
4 Trends Shaping the Future of the Leisure & Recreation Products Industry
Robust Demand for Fitness-Related Products: The industry is gaining from a lasting shift toward health and wellness, as consumers increasingly prioritize active lifestyles and overall well-being. This trend is driving steady demand for a wide range of fitness and recreational products across both indoor and outdoor categories.
In the United States, demand remains particularly strong, supported by evolving lifestyle habits and a growing focus on personal fitness. Consumers are investing in home workout equipment, wearable devices and subscription-based fitness services. At the same time, the expansion of digital fitness platforms and at-home training options is boosting adoption, especially among individuals seeking convenience and flexibility.
Booming Golf Business: The U.S. golf industry is witnessing a strong revival, supported by rising participation, evolving formats and deeper engagement across diverse age groups. While traditional on-course play remains stable, off-course concepts, such as tech-driven driving ranges and entertainment-focused venues, are drawing in younger and more casual players, expanding the sport’s overall reach. Demand for golf equipment is also strengthening, fueled by more frequent play and a greater willingness among consumers to upgrade clubs, balls and accessories. At the same time, advancements in custom fitting, performance tracking and immersive experiences are increasing per-player spending.
Steady Momentum in the Boating Industry: The boating industry is gaining traction as more consumers turn to outdoor and water-based activities for leisure and relaxation. Growing participation in fishing, cruising and watersports is supporting demand for boats and related equipment, aided by improving income levels and a preference for flexible, experience-driven recreation. In addition, ongoing advancements in design and technology, such as better fuel efficiency, smart features and enhanced comfort, are encouraging consumers to upgrade to newer models. The expansion of the pre-owned boat market and marina infrastructure is also making boating more accessible, helping sustain long-term growth across the industry.
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 #37, placing it in the top 15% of more than 243 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, but has outperformed its sector in the past year. Stocks in the industry have collectively gained 25.9% compared with the S&P 500’s rise of 36%. The Zacks Consumer Discretionary sector has rallied 12.1% in the same time frame.
1-Year Price Performance
Valuation
Based on forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 17.89X compared with the S&P 500’s 20.64X and the sector’s 17.05X. In the past five years, the industry has traded as high as 32.92X and as low as 13.19X, the median being 20.34X, as the charts show.
Forward Price-to-Earnings Ratio Compared With the S&P 500
4 Leisure & Recreation Products Stocks to Watch
Johnson Outdoors: The company is gaining from solid demand in its core fishing and watercraft businesses, supported by a steady rollout of new and improved products. Strong performance in its fishing segment reflects continued consumer interest and better retail restocking trends. At the same time, the company is expanding reach through digital channels, helping it connect more directly with customers. 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 JOUT’s 2026 earnings has increased in the past 60 days. JOUT stock has soared 107.3% in the past year.
Price & Consensus: JOUT
Malibu Boats: The company is benefiting from steady demand in the premium recreational boating segment, particularly in wake boats and performance watercraft. The company’s focus on innovation, including advanced surf technologies and enhanced onboard features, continues to attract enthusiasts and drive higher average selling prices.
Shares of this Zacks Rank #1 company have declined 14.8% in the past year. The Zacks Consensus Estimate for MBUU's 2026 earnings has increased in the past 60 days.
Price & Consensus: MBUU
MasterCraft Boat: The company is benefiting from its strong presence in the premium wake and performance boat segment, where affluent consumers continue to show interest despite a moderating market. The company’s emphasis on innovation, such as advanced surf systems, improved engine performance and enhanced onboard features, is helping attract buyers and support higher pricing.
Shares of this Zacks Rank #1 company have surged 20.9% in the past year. The Zacks Consensus Estimate for MCFT's 2026 earnings has increased in the past 60 days.
Price & Consensus: MCFT
American Outdoor Brands: 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.
Shares of this Zacks Rank #2 (Buy) company have declined 24.5% in the past year. The Zacks Consensus Estimate for AOUT's 2026 earnings has increased in the past 30 days.
Price & Consensus: AOUT
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4 Top Picks in Leisure & Recreation as Industry Outlook Brightens
The Zacks Leisure and Recreation Products industry is benefiting from a positive trend in fitness product sales, driven by growing health and fitness awareness. Product innovation, premium offerings and expanding e-commerce channels are further driving demand and supporting growth. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Johnson Outdoors Inc. (JOUT - Free Report) , Malibu Boats, Inc. (MBUU - Free Report) , MasterCraft Boat Holdings, Inc. (MCFT - Free Report) and American Outdoor Brands, Inc. (AOUT - 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.
4 Trends Shaping the Future of the Leisure & Recreation Products Industry
Robust Demand for Fitness-Related Products: The industry is gaining from a lasting shift toward health and wellness, as consumers increasingly prioritize active lifestyles and overall well-being. This trend is driving steady demand for a wide range of fitness and recreational products across both indoor and outdoor categories.
In the United States, demand remains particularly strong, supported by evolving lifestyle habits and a growing focus on personal fitness. Consumers are investing in home workout equipment, wearable devices and subscription-based fitness services. At the same time, the expansion of digital fitness platforms and at-home training options is boosting adoption, especially among individuals seeking convenience and flexibility.
Booming Golf Business: The U.S. golf industry is witnessing a strong revival, supported by rising participation, evolving formats and deeper engagement across diverse age groups. While traditional on-course play remains stable, off-course concepts, such as tech-driven driving ranges and entertainment-focused venues, are drawing in younger and more casual players, expanding the sport’s overall reach. Demand for golf equipment is also strengthening, fueled by more frequent play and a greater willingness among consumers to upgrade clubs, balls and accessories. At the same time, advancements in custom fitting, performance tracking and immersive experiences are increasing per-player spending.
Steady Momentum in the Boating Industry: The boating industry is gaining traction as more consumers turn to outdoor and water-based activities for leisure and relaxation. Growing participation in fishing, cruising and watersports is supporting demand for boats and related equipment, aided by improving income levels and a preference for flexible, experience-driven recreation.
In addition, ongoing advancements in design and technology, such as better fuel efficiency, smart features and enhanced comfort, are encouraging consumers to upgrade to newer models. The expansion of the pre-owned boat market and marina infrastructure is also making boating more accessible, helping sustain long-term growth across the industry.
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 #37, placing it in the top 15% of more than 243 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, but has outperformed its sector in the past year. Stocks in the industry have collectively gained 25.9% compared with the S&P 500’s rise of 36%. The Zacks Consumer Discretionary sector has rallied 12.1% in the same time frame.
1-Year Price Performance
Valuation
Based on forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 17.89X compared with the S&P 500’s 20.64X and the sector’s 17.05X. In the past five years, the industry has traded as high as 32.92X and as low as 13.19X, the median being 20.34X, as the charts show.
Forward Price-to-Earnings Ratio Compared With the S&P 500
4 Leisure & Recreation Products Stocks to Watch
Johnson Outdoors: The company is gaining from solid demand in its core fishing and watercraft businesses, supported by a steady rollout of new and improved products. Strong performance in its fishing segment reflects continued consumer interest and better retail restocking trends. At the same time, the company is expanding reach through digital channels, helping it connect more directly with customers. 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 JOUT’s 2026 earnings has increased in the past 60 days. JOUT stock has soared 107.3% in the past year.
Price & Consensus: JOUT
Malibu Boats: The company is benefiting from steady demand in the premium recreational boating segment, particularly in wake boats and performance watercraft. The company’s focus on innovation, including advanced surf technologies and enhanced onboard features, continues to attract enthusiasts and drive higher average selling prices.
Shares of this Zacks Rank #1 company have declined 14.8% in the past year. The Zacks Consensus Estimate for MBUU's 2026 earnings has increased in the past 60 days.
Price & Consensus: MBUU
MasterCraft Boat: The company is benefiting from its strong presence in the premium wake and performance boat segment, where affluent consumers continue to show interest despite a moderating market. The company’s emphasis on innovation, such as advanced surf systems, improved engine performance and enhanced onboard features, is helping attract buyers and support higher pricing.
Shares of this Zacks Rank #1 company have surged 20.9% in the past year. The Zacks Consensus Estimate for MCFT's 2026 earnings has increased in the past 60 days.
Price & Consensus: MCFT
American Outdoor Brands: 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.
Shares of this Zacks Rank #2 (Buy) company have declined 24.5% in the past year. The Zacks Consensus Estimate for AOUT's 2026 earnings has increased in the past 30 days.
Price & Consensus: AOUT