While we all can point to numerous negativities that the coronavirus pandemic brought about, there is one positive that we cannot deny. The pandemic has prioritized health over anything else and changed the way we live. It has significantly increased self-realization as habits like smoking, obesity and unhealthy living styles are generally the factors that invite the virus.
In 2020, when the pandemic was at its peak, people turned to keep fit as a precautionary measure to avoid contracting the virus. They not only adopted healthy eating habits but also inculcated fitness regimes in their daily lives. As lockdowns kept everyone indoors, people opted for at-home fitness options. Here, came into play the role of fitness apps, which saw increased subscriptions for at-home fitness packs. Big-wigs like NIKE ( NKE Quick Quote NKE - Free Report) and lululemon ( LULU Quick Quote LULU - Free Report) , which sell exercise and related apparel and accessories, stepped up the game by improving their fitness apps to become easily accessible to consumers. As the restrictions are being lifted and consumers are eager to step outdoors to hit the gyms, experts believe that the trend for at-home fitness is not likely to fade. The importance of keeping fit is likely to rule the minds of individuals. Also, the habits cultivated during the lockdowns for healthy eating and living will persist. In 2021, people are likely to be more inclined toward mindful exercises like yoga and meditation, as uncertainties regarding the pandemic remain and work-from-home continues. In addition to bringing awareness for mindful exercises or physical sweat-outs, the shift to fitness has accelerated the demand for activewear, fitness equipment and accessories. Consumers are adding a variety of activewear to their wardrobes more than ever. At the same time, fitness enthusiasts, who have been unable to hit the gyms, are opting for fitness equipment to set up home-gyms. Backed by these trends, there is likely to be a strong demand for virtual fitness apps, wearable technology, workout footwear, activewear, workout equipment and more. Companies selling footwear and fitness gear are reinventing their products to suit the at-home fitness needs of consumers. Moreover, the companies are exploring the women’s space, where the penetration has been less so far. Recently, there has been an increase in women turning to sports and fitness. As a result, the companies are reinventing and redevising products to grab a share in the women’s space. 4 Fitness Stocks to Play the Trend
The shift in fitness trends indicates that it is prudent to invest in the industry at this time. Here we have highlighted four stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy). The stocks are backed by sound fundamentals, surging share price and a track record of better-than-expected results.
Rocky Brands, Inc. ( RCKY Quick Quote RCKY - Free Report) is a leading designer, manufacturer and marketer of premium-quality footwear and apparel marketed under a portfolio of well-recognized brands. The company is gaining from the robust demand for its Rocky, Georgia and Durango brands across the wholesale and direct to consumer channels. Also, the company has been on track with its multi-year initiatives in product innovation, fulfillment, consumer engagement and inventory management, which aided strong market share gains and positioned it for long-term growth. The Zacks Consensus Estimate for Rocky Brands’ 2021 sales and earnings suggests growth of 48.3% and 64.3%, respectively, from the year-ago period’s reported figures. The consensus mark for its 2021 earnings has been unchanged in the past 30 days. Moreover, the Zacks Rank #1 company has a trailing four-quarter earnings surprise of 156.9%, on average. Shares of Rocky Brands have surged 183.8% in a year. You can see . the complete list of today’s Zacks #1 Rank stocks here Adidas AG ( ADDYY Quick Quote ADDYY - Free Report) is a global athletic and sports lifestyle products company. The company is benefiting from healthy brand momentum and a stronger-than-expected product demand. Also, the direct-to-consumer (“DTC”)-led sales growth in all market segments and strong profitability have been drivers. The company remains focused on its growth strategies to attract women customers in five core categories, including soccer, running, training, outdoors and lifestyle. In doing so, it has started a slogan, "Own The Game", and created a cross-category plan, which aims at achieving currency-neutral net sales growth in the mid-teens between 2021 and 2025. The company, with a Zacks Rank #2 at present, has a trailing four-quarter earnings surprise of 12.7%, on average. The Zacks Consensus Estimate for its 2021 sales and earnings suggests growth of 14.5% and 269.9%, respectively, from the year-ago period’s reported figures. Moreover, the consensus estimate for its current-year earnings has improved 0.4% in the past 30 days. The stock has rallied 31.9% in the past year.
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Under Armour, Inc. ( UAA Quick Quote UAA - Free Report) is one of the leading manufacturers and distributors of authentic athletic footwear, apparel, and accessories for a wide variety of sports and fitness activities in the United States and internationally. The company is progressing well with its multi-year transformation plan, focused on strengthening its brand through enhanced customer connections, effective innovations and strict go-to-market process. To tap the shift in consumer behavior due to the pandemic, it is focusing on digitization by converting real-time data and analytics to drive brand interest and consideration within its largest categories of training and running. Its Hovr footwear launched in March for women runners is likely to help gain a share in the women’s space. The Zacks Rank #2 company has a trailing four-quarter earnings surprise of 285.9%, on average. The Zacks Consensus Estimate for Under Armour’s 2021 sales and earnings suggests growth of 18.8% and 223.1%, respectively, from the year-ago period’s reported figures. The consensus mark for its 2021 earnings has moved up 3.2% in the past 30 days. Shares of the company have risen 114.3% in the past year. Columbia Sportswear Company ( COLM Quick Quote COLM - Free Report) sources, markets and distributes outdoor and active lifestyle apparel, footwear, accessories and equipment in the United States and internationally. The company has been gaining from brand enhancement initiatives. It is also benefiting from its direct-to-consumer e-commerce operations. Its commitment to innovation is likely to attract more consumers and drive sales. Management has a solid pipeline of new products and technologies, including plans to launch the company’s biggest innovation — Omni-Heat Infinity. The Zacks Consensus Estimate for the company’s 2021 sales and earnings suggests growth of 22% and 168.5%, respectively, from the year-ago period’s reported figures. The consensus mark for its 2021 earnings has been raised 1.4% in the past 30 days. Shares of the Zacks Rank #2 company have rallied 28.5% in the past year. Breakout Biotech Stocks with Triple-Digit Profit Potential
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