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Vaccine Trials to Boost Leisure and Recreation Space: 5 Picks

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Rising coronavirus cases along with Presidential election-related concerns weighed on investors throughout the past week. However, news on progress on a COVID-19 vaccine helped some of the worst-hit sectors gain traction.

Vaccine Trial Fuels Hopes of Returning to Normal

Scientists, researchers and pharmaceutical companies have been working around the clock to come up with a viable vaccine or treatment amid the pandemic so that people and businesses can return to normal globally. While the procedure of making a vaccine is time consuming and requires several phases of testing before actual use, markets are getting restless as restrictions and social-distancing norms hamper lifestyle and businesses constantly.

Several businesses that require outdoor engagements like traveling, sports, recreation and tourism have been facing the brunt of the pandemic and any news of progress on the vaccine development front should reignite hopes. On Nov 9, BioNTech and Pfizer reported that their COVID-19 vaccine candidate can protect most people from symptomatic infections. The vaccine is in a Phase 3 clinical trial and BioNTech and Pfizer are now the first to introduce a COVID-19 vaccine to the U.S market. BNT162b2, BioNTech and Pfizer’s experimental mRNA vaccine has an efficacy rate of 90% in the Phase 3 clinical trial, where patients were assessed seven days after the second dose was administered. This is higher than the 60% threshold which has been cited in the original study protocol for the vaccine.

On the same day, Eli Lilly & Co. announced that the FDA has approved a COVID-19 antibody treatment, called bamlanivimab, for emergency use. Bamlanivimab has been seen as a potential treatment for those patients with mild to moderate infection and leads to reduced viral load as well as lower rates of symptoms and hospitalization.

While positive news on vaccine development put stay-at-home winners under pressure, it lifts companies hit hardest by months of travel bans and lockdowns. Lower-income workers in the leisure and recreation industry have already bore the brunt of the crisis. A breakthrough in coronavirus vaccine will not only allow the industry to return to business but also lift the broader economy.

5 Top Picks

With progress in coronavirus vaccine trials, it seems that theleisure and recreation space will return to its normal soon. Here are five stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and can make the most.

Camping World Holdings, Inc. (CWH - Free Report) operates as an outdoor and camping retailer. The company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Leisure and Recreation Services industry’s projected earnings decline of more than 100%.

The Zacks Consensus Estimate for this Zacks Rank #1 company’s current-year earnings has been revised 20.6% upward over the past 60 days.You can see the complete list of today’s Zacks #1 Rank stocks here.

Vista Outdoor Inc. (VSTO - Free Report) designs, manufactures, and markets consumer products for outdoor sports and recreation markets. The company that belongs to the Zacks Leisure and Recreation Products industry has an expected earnings growth rate of 25% for the current year.The Zacks Consensus Estimate for this  Zacks Rank #1 company’s current-year earnings has been revised 12.1% upward over the past 60 days.

YETI Holdings, Inc. (YETI - Free Report) designs, markets, retails, and distributes products for the outdoor and recreation market. The company, belonging to the Zacks Leisure and Recreation Products industry, has an expected earnings growth rate of 25% for the current year. The Zacks Consensus Estimate for this Zacks Rank #1 company’s current-year earnings has been revised 7.9% upward over the past 60 days.

Malibu Boats, Inc. (MBUU - Free Report) designs, manufactures, distributes, markets and sells a range of recreational powerboats. The company that belongs to the Zacks Leisure and Recreation Products industry has an expected earnings growth rate of 35.3% for the current year. The Zacks Consensus Estimate for this Zacks Rank #2 company’s current-year earnings has been revised 1.6% upward over the past 60 days.

Brunswick Corporation (BC - Free Report) designs, manufactures and markets recreation products. The company that belongs to the Zacks Leisure and Recreation Products industry has an expected earnings growth rate of 9% for the current year. The Zacks Consensus Estimate for this Zacks Rank #2 company’s current-year earnings has been revised 15.1% upward over the past 60 days.

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