The athletic apparel and footwear market witnessed a rise during the COVID-19 pandemic with people carrying out their work and fitness routines from home. This looks like a lasting trend now as COVID-19 cases across the United States continue to surge. Per the latest data from the Johns Hopkins University, coronavirus cases in the United States
crossed 20 million as of Jan 5. Although the rollout of the vaccine has started in the country, it will still take time for the vaccines to reach the majority of the population.
Social distancing norms to curb the spread of the virus forced gyms and yoga centers to close down. Hence, people resorted to buying more activewear apparel as the distinction among office wear, casual and activewear began to fade. People started wearing comfortable clothing and accessories which would allow them to exercise or relax at home without having to change. Athleisure wear or apparel fit the bill as both regular and exercise wear. In fact, the athleisure wear market is expected to grow in the future as well. Notably, Allied Market Research expects the global athleisure market to reach $257.1 billion by 2026 from a market size of $155.2 billion in 2018, as mentioned in a
Moreover, the U.S. athletic apparel market is also predicted to contribute to this growth most significantly as it is the largest in the world, as quoted in a
Linchpin article. The article estimated that the U.S. market for athletic wear will grow to $69.2 billion in 2021 from $54.3 billion in 2015. Notably, this stands to account for 36% of athletic apparel sales worldwide.
Meanwhile, as an accessory to athletic apparel, performance footwear is set to witness growth in 2021, per a
press release by the NPD Group. Notably, the article mentioned that the health and fitness segment during the pandemic benefited the performance running category in 2020. NPD predicted that running shoes are well poised to “outperform the overall market as consumers continue turning to the activity to stay active yet socially distant.” 3 Stocks to Watch
The athletic apparel industry looks poised to witness growth in the near term as people remain focused on maintaining their fitness while staying comfortable. Moreover, performance footwear is also estimated to grow as people look to stay active. This makes it judicious to keep an eye on stocks that have the potential to make the most of this trend. Hence, we have selected three such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see
. the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Deckers Outdoor Corporation ( DECK Quick Quote DECK - Free Report) , along with its subsidiaries, designs, markets and distributes footwear, apparel and accessories for casual lifestyle use and high-performance activities. It offers premium footwear, apparel and accessories under the UGG brand name; sport sandals, shoes, and boots under the Teva brand name. The company also provides footwear and apparel for ultra-runners and athletes under the Hoka brand name. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 22.5% over the past 90 days. The company’s expected earnings growth rate for the current year is 15.9%. NIKE, Inc. ( NKE Quick Quote NKE - Free Report) , along with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment and accessories worldwide. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 4.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 85%. lululemon athletica inc. ( LULU Quick Quote LULU - Free Report) , along with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men and female youth internationally. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its next-year earnings increased 3.1% over the past 90 days. The company’s expected earnings growth rate for next year is 44.4%. 5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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