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4 Leisure Stocks Offering Growth Amid Industry Pressures
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The Zacks Leisure and Recreation Services industry continues to operate in a mixed environment, with inflation and economic uncertainty influencing discretionary spending. Elevated labor, maintenance, fuel and other operating costs are weighing on profitability, prompting companies to emphasize productivity and cost discipline. While demand for travel, entertainment and experience-based offerings remains supportive in several segments, operators also face challenges from geopolitical uncertainty, capacity additions and changing consumer spending patterns. Investments in digital capabilities, premium offerings, membership programs and operational improvements are creating additional growth opportunities. Against this backdrop, Life Time Group Holdings, Inc. (LTH - Free Report) , Marriott Vacations Worldwide Corporation (VAC - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and The Marcus Corporation (MCS - Free Report) are benefiting from several of these industry trends.
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.
5 Trends Shaping the Leisure & Recreation Services Industry's Future
Consumer Spending Remains Selective: Leisure companies continue to operate in a mixed consumer environment. Persistent inflation and economic uncertainty can make households more cautious about discretionary purchases. Nevertheless, consumers continue to prioritize travel, entertainment, wellness and other experience-oriented activities, creating pockets of demand across the industry.
Expense Pressures Keep Efficiency in Focus: Elevated labor, maintenance, utilities, marketing and other operating costs remain key challenges for leisure operators. Companies are increasingly emphasizing workforce productivity, cost controls, technology adoption and operational efficiencies to manage expenses and preserve profitability.
Travel Demand Offers Opportunities Amid Industry Challenges: Continued interest in vacations and experience-driven travel is supporting demand across the leisure industry. Resorts, cruise lines and vacation businesses can benefit from steady bookings, customer spending and interest in premium experiences. However, the travel sector is also facing headwinds, including elevated operating and fuel costs, geopolitical uncertainty, capacity additions and changing consumer preferences. For cruise operators in particular, these pressures can affect pricing, occupancy, margins and overall profitability. Companies that effectively balance capacity, pricing and costs while delivering differentiated experiences may be better positioned to capitalize on sustained travel demand.
Digitalization Enhances Customer Engagement: Technology continues to transform how leisure companies attract and serve customers. Mobile platforms, online booking systems, loyalty programs, artificial intelligence and data analytics are helping operators personalize offers, improve customer convenience and optimize business operations.
Premium Experiences Create Upselling Opportunities: Consumers' continued interest in differentiated experiences is encouraging companies to expand premium products and services. Personalized packages, upgraded amenities, memberships and targeted promotions can help increase customer engagement, encourage repeat visits and support higher spending.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. The industry carries a Zacks Industry Rank of #170, placing it in the bottom 31% of 247 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull, near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing 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 but outperformed its sector in the past year. Stocks in the industry have collectively declined 13.9% in the past year compared with the broader sector’s decline of 19.4%. The S&P 500 has risen 16.9% in the same time frame.
1-Year Price Performance
Valuation
Based on the forward 12-month P/S, the industry trades at 2.47X compared with the S&P 500’s 4.72X and the sector’s 2.35X. In the past five years, the industry has traded as high as 4.62X and as low as 1.80X, the median being 2.32X, as the charts show.
P/S Ratio (F12M) Compared With S&P
4 Leisure & Recreation Services Stocks to Keep an Eye On
Life Time Group Holdings: The company is benefiting from steady membership growth, higher revenue per membership and stronger utilization of its fitness and wellness services. Continued club expansion is broadening its growth base, while higher revenues and operating efficiencies are supporting profitability.
Shares of this Zacks Rank #1 (Strong Buy) company have surged 43.4% in the past year. In 2026, LTH’s sales and earnings are expected to witness year-over-year growth of 12.4% and 22.9%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: LTH
Marriott Vacations: The company is benefiting from healthy demand for vacation ownership, higher transaction values and stronger sales productivity. Contract sales growth and continued cost discipline are supporting profitability, while management’s improved 2026 outlook reflects stronger expectations for the underlying business.
Shares of this Zacks Rank #1 company have surged 57% in the past year. The company’s sales and earnings in 2026 are likely to grow 8.3% and 21.5%, respectively.
Price & Consensus: VAC
Marcus: The company is benefiting from strong movie attendance, higher ticket prices and increased concession spending, supported by a solid film lineup. Its hotels and resorts business is also gaining from healthy leisure demand, higher occupancy and room rates.
Shares of this Zacks Rank #1 company have gained 85% in the past year. In 2026, MCS’ sales and earnings are expected to witness year-over-year growth of 8.3% and 652.9%, respectively.
Price & Consensus: MCS
AMC Entertainment: The company is benefiting from stronger box-office activity, higher attendance and improved per-patron spending. Revenue growth is generating significant operating leverage, while premium offerings, food and beverage sales and merchandise are providing additional revenue opportunities.
Shares of this Zacks Rank #2 (Buy) company have gained 13.5% in the past year. In 2026, AMC’s sales and earnings are expected to witness year-over-year growth of 14.6% and 77.1%, respectively.
View the Zacks #1 Rank List
Image: Bigstock
4 Leisure Stocks Offering Growth Amid Industry Pressures
The Zacks Leisure and Recreation Services industry continues to operate in a mixed environment, with inflation and economic uncertainty influencing discretionary spending. Elevated labor, maintenance, fuel and other operating costs are weighing on profitability, prompting companies to emphasize productivity and cost discipline. While demand for travel, entertainment and experience-based offerings remains supportive in several segments, operators also face challenges from geopolitical uncertainty, capacity additions and changing consumer spending patterns. Investments in digital capabilities, premium offerings, membership programs and operational improvements are creating additional growth opportunities. Against this backdrop, Life Time Group Holdings, Inc. (LTH - Free Report) , Marriott Vacations Worldwide Corporation (VAC - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and The Marcus Corporation (MCS - Free Report) are benefiting from several of these industry trends.
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.
5 Trends Shaping the Leisure & Recreation Services Industry's Future
Consumer Spending Remains Selective: Leisure companies continue to operate in a mixed consumer environment. Persistent inflation and economic uncertainty can make households more cautious about discretionary purchases. Nevertheless, consumers continue to prioritize travel, entertainment, wellness and other experience-oriented activities, creating pockets of demand across the industry.
Expense Pressures Keep Efficiency in Focus: Elevated labor, maintenance, utilities, marketing and other operating costs remain key challenges for leisure operators. Companies are increasingly emphasizing workforce productivity, cost controls, technology adoption and operational efficiencies to manage expenses and preserve profitability.
Travel Demand Offers Opportunities Amid Industry Challenges: Continued interest in vacations and experience-driven travel is supporting demand across the leisure industry. Resorts, cruise lines and vacation businesses can benefit from steady bookings, customer spending and interest in premium experiences. However, the travel sector is also facing headwinds, including elevated operating and fuel costs, geopolitical uncertainty, capacity additions and changing consumer preferences. For cruise operators in particular, these pressures can affect pricing, occupancy, margins and overall profitability. Companies that effectively balance capacity, pricing and costs while delivering differentiated experiences may be better positioned to capitalize on sustained travel demand.
Digitalization Enhances Customer Engagement: Technology continues to transform how leisure companies attract and serve customers. Mobile platforms, online booking systems, loyalty programs, artificial intelligence and data analytics are helping operators personalize offers, improve customer convenience and optimize business operations.
Premium Experiences Create Upselling Opportunities: Consumers' continued interest in differentiated experiences is encouraging companies to expand premium products and services. Personalized packages, upgraded amenities, memberships and targeted promotions can help increase customer engagement, encourage repeat visits and support higher spending.
Zacks Industry Rank Indicates Dull Prospects
The Zacks Leisure and Recreation Services industry is grouped within the broader Zacks Consumer Discretionary sector. The industry carries a Zacks Industry Rank of #170, placing it in the bottom 31% of 247 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull, near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing 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 but outperformed its sector in the past year. Stocks in the industry have collectively declined 13.9% in the past year compared with the broader sector’s decline of 19.4%. The S&P 500 has risen 16.9% in the same time frame.
1-Year Price Performance
Valuation
Based on the forward 12-month P/S, the industry trades at 2.47X compared with the S&P 500’s 4.72X and the sector’s 2.35X. In the past five years, the industry has traded as high as 4.62X and as low as 1.80X, the median being 2.32X, as the charts show.
P/S Ratio (F12M) Compared With S&P
4 Leisure & Recreation Services Stocks to Keep an Eye On
Life Time Group Holdings: The company is benefiting from steady membership growth, higher revenue per membership and stronger utilization of its fitness and wellness services. Continued club expansion is broadening its growth base, while higher revenues and operating efficiencies are supporting profitability.
Shares of this Zacks Rank #1 (Strong Buy) company have surged 43.4% in the past year. In 2026, LTH’s sales and earnings are expected to witness year-over-year growth of 12.4% and 22.9%, respectively. You can see the complete list of today’s Zacks #1 Rank stocks here.
Price & Consensus: LTH
Marriott Vacations: The company is benefiting from healthy demand for vacation ownership, higher transaction values and stronger sales productivity. Contract sales growth and continued cost discipline are supporting profitability, while management’s improved 2026 outlook reflects stronger expectations for the underlying business.
Shares of this Zacks Rank #1 company have surged 57% in the past year. The company’s sales and earnings in 2026 are likely to grow 8.3% and 21.5%, respectively.
Price & Consensus: VAC
Marcus: The company is benefiting from strong movie attendance, higher ticket prices and increased concession spending, supported by a solid film lineup. Its hotels and resorts business is also gaining from healthy leisure demand, higher occupancy and room rates.
Shares of this Zacks Rank #1 company have gained 85% in the past year. In 2026, MCS’ sales and earnings are expected to witness year-over-year growth of 8.3% and 652.9%, respectively.
Price & Consensus: MCS
AMC Entertainment: The company is benefiting from stronger box-office activity, higher attendance and improved per-patron spending. Revenue growth is generating significant operating leverage, while premium offerings, food and beverage sales and merchandise are providing additional revenue opportunities.
Shares of this Zacks Rank #2 (Buy) company have gained 13.5% in the past year. In 2026, AMC’s sales and earnings are expected to witness year-over-year growth of 14.6% and 77.1%, respectively.
Price & Consensus: AMC