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Zacks Industry Outlook Highlights Academy Sports and Outdoors, Peloton Interactive and Playboy
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 14, 2025 – Today, Zacks Equity Research discusses Academy Sports and Outdoors, Inc. (ASO - Free Report) , Peloton Interactive, Inc. (PTON - Free Report) and Playboy, Inc. (PLBY - Free Report) .
The Zacks Leisure and Recreation Products industry faces challenges due to the ongoing tariff war and soft macroeconomic data. However, a positive fitness product sales trend, driven by growing health and fitness awareness, bodes well for the industry. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Academy Sports and Outdoors, Inc., Peloton Interactive, Inc. and Playboy, Inc. 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.
3 Trends Shaping the Future of the Leisure & Recreation Products Industry
Tariff War & Economic Uncertainty: U.S. President Donald Trump's decision to impose tariffs on key trade partners such as China, Mexico and Canada is affecting the industry. Investors remain worried about the global trade war's impact on the U.S. economy, especially with lingering inflation woes. Global factors, including geopolitical tensions and supply-chain disruptions, further cloud the outlook. As businesses and consumers alike grow more cautious, questions remain over whether the economy can sustain its current momentum or is heading toward a more pronounced slowdown.
Booming Golf Business: The golf industry has been doing exceptionally well in the past couple of years. The demand for golf equipment is rising due to advancements in technology. Innovations like adjustable hosels and aerodynamic clubhead designs are offering players more tailored and efficient options to improve their game. The game is benefiting from an increase in the participation of young people. Technology also plays a vital role in reshaping sports. India and China have become two of the most significant emerging golf markets. With more than 16,000 golf courses and a strong network of related businesses from equipment manufacturers to apparel brands and hospitality services, the industry supports jobs nationwide.
Robust Demand for Fitness-Related Products: The demand for fitness-related products in the United States has been strong, driven by growing health awareness, lifestyle changes and a focus on personal well-being. Consumers continue to invest in home workout equipment, wearable fitness technology and subscription-based fitness programs. The rise of digital fitness platforms and at-home workout solutions has fueled interest, especially among those seeking convenience and flexibility.
Zacks Industry Rank Indicates Dismal 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 dismal near-term prospects.
The Leisure and Recreation Products industry currently carries a Zacks Industry Rank #204, which places it in the bottom 17% of more than 246 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 bottom 50% of the Zacks-ranked industries results from the negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, analysts are losing confidence in this group's earnings growth potential. Since Jan. 31, 2025, the industry's northbound estimate for the current year has decreased 13.6%.
Before we present a few stocks from the industry that you may want to hold, let us look at the industry's recent stock market performance and valuation picture.
Industry Outperforms the S&P 500
The Zacks Leisure and Recreation Products industry has outperformed the Zacks S&P 500 composite and its sector in the past year. Stocks in the industry have collectively grown 49.8% compared with the S&P 500's rise of 11.8%. The Zacks Consumer Discretionary sector has rallied 27% in the same time frame.
Valuation
On the basis of forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 35.08X compared with the S&P 500's 22.64X and the sector's 18.45X. In the past five years, the industry has traded as high as 43.70X and as low as 16.16X, the median being 25.26X.
3 Leisure & Recreation Products Stocks to Watch
Peloton: The company is showing meaningful signs of progress as it transitions from crisis management to a focused, profitability-driven recovery. Peloton continues to benefit from the stickiness of its connected fitness platform, with high-margin subscription revenues now contributing nearly 70% of total sales. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Peloton's fiscal 2025 earnings are expected to witness a year-over-year upsurge of 72.9%. The PTON stock has soared 84.8% in the past year.
Playboy: PLBY is benefiting from its shift to an asset-light licensing model, with strong momentum from the Byborg partnership and a rebound in its China licensing business. Honey Birdette's focus on full-price sales and brand health is enhancing profitability. The relaunch of Playboy magazine has sparked renewed consumer interest and opened monetization avenues. Additionally, the company is exploring growth in entertainment, gaming and experiential branding.
The Zacks Rank #2 company's estimate for loss per share in 2025 has been unchanged in the past 30 days. The stock has skyrocketed 137.5% in the past year.
Academy Sports and Outdoors: The company has been gaining from a multi-pronged growth strategy that emphasizes new brand partnerships, enhanced store productivity, a sharpened value proposition and digital capability upgrades.
Shares of this Zacks Rank #3 (Hold) company have declined 2.3% in the past year. ASO's fiscal 2025 earnings are expected to witness a year-over-year decline of 1.7%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Zacks Industry Outlook Highlights Academy Sports and Outdoors, Peloton Interactive and Playboy
For Immediate Release
Chicago, IL – July 14, 2025 – Today, Zacks Equity Research discusses Academy Sports and Outdoors, Inc. (ASO - Free Report) , Peloton Interactive, Inc. (PTON - Free Report) and Playboy, Inc. (PLBY - Free Report) .
Industry: Leisure & Recreation Products
Link: https://www.zacks.com/commentary/2573740/3-leisure-recreation-stocks-to-watch-despite-industry-woes
The Zacks Leisure and Recreation Products industry faces challenges due to the ongoing tariff war and soft macroeconomic data. However, a positive fitness product sales trend, driven by growing health and fitness awareness, bodes well for the industry. Industry participants who design, market, retail and distribute products for the outdoor and recreation market are witnessing solid demand. Stocks like Academy Sports and Outdoors, Inc., Peloton Interactive, Inc. and Playboy, Inc. 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.
3 Trends Shaping the Future of the Leisure & Recreation Products Industry
Tariff War & Economic Uncertainty: U.S. President Donald Trump's decision to impose tariffs on key trade partners such as China, Mexico and Canada is affecting the industry. Investors remain worried about the global trade war's impact on the U.S. economy, especially with lingering inflation woes. Global factors, including geopolitical tensions and supply-chain disruptions, further cloud the outlook. As businesses and consumers alike grow more cautious, questions remain over whether the economy can sustain its current momentum or is heading toward a more pronounced slowdown.
Booming Golf Business: The golf industry has been doing exceptionally well in the past couple of years. The demand for golf equipment is rising due to advancements in technology. Innovations like adjustable hosels and aerodynamic clubhead designs are offering players more tailored and efficient options to improve their game. The game is benefiting from an increase in the participation of young people. Technology also plays a vital role in reshaping sports. India and China have become two of the most significant emerging golf markets. With more than 16,000 golf courses and a strong network of related businesses from equipment manufacturers to apparel brands and hospitality services, the industry supports jobs nationwide.
Robust Demand for Fitness-Related Products: The demand for fitness-related products in the United States has been strong, driven by growing health awareness, lifestyle changes and a focus on personal well-being. Consumers continue to invest in home workout equipment, wearable fitness technology and subscription-based fitness programs. The rise of digital fitness platforms and at-home workout solutions has fueled interest, especially among those seeking convenience and flexibility.
Zacks Industry Rank Indicates Dismal 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 dismal near-term prospects.
The Leisure and Recreation Products industry currently carries a Zacks Industry Rank #204, which places it in the bottom 17% of more than 246 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 bottom 50% of the Zacks-ranked industries results from the negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, analysts are losing confidence in this group's earnings growth potential. Since Jan. 31, 2025, the industry's northbound estimate for the current year has decreased 13.6%.
Before we present a few stocks from the industry that you may want to hold, let us look at the industry's recent stock market performance and valuation picture.
Industry Outperforms the S&P 500
The Zacks Leisure and Recreation Products industry has outperformed the Zacks S&P 500 composite and its sector in the past year. Stocks in the industry have collectively grown 49.8% compared with the S&P 500's rise of 11.8%. The Zacks Consumer Discretionary sector has rallied 27% in the same time frame.
Valuation
On the basis of forward 12-month price-to-earnings, which is a commonly used multiple for valuing leisure products stocks, the industry trades at 35.08X compared with the S&P 500's 22.64X and the sector's 18.45X. In the past five years, the industry has traded as high as 43.70X and as low as 16.16X, the median being 25.26X.
3 Leisure & Recreation Products Stocks to Watch
Peloton: The company is showing meaningful signs of progress as it transitions from crisis management to a focused, profitability-driven recovery. Peloton continues to benefit from the stickiness of its connected fitness platform, with high-margin subscription revenues now contributing nearly 70% of total sales. The company currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Peloton's fiscal 2025 earnings are expected to witness a year-over-year upsurge of 72.9%. The PTON stock has soared 84.8% in the past year.
Playboy: PLBY is benefiting from its shift to an asset-light licensing model, with strong momentum from the Byborg partnership and a rebound in its China licensing business. Honey Birdette's focus on full-price sales and brand health is enhancing profitability. The relaunch of Playboy magazine has sparked renewed consumer interest and opened monetization avenues. Additionally, the company is exploring growth in entertainment, gaming and experiential branding.
The Zacks Rank #2 company's estimate for loss per share in 2025 has been unchanged in the past 30 days. The stock has skyrocketed 137.5% in the past year.
Academy Sports and Outdoors: The company has been gaining from a multi-pronged growth strategy that emphasizes new brand partnerships, enhanced store productivity, a sharpened value proposition and digital capability upgrades.
Shares of this Zacks Rank #3 (Hold) company have declined 2.3% in the past year. ASO's fiscal 2025 earnings are expected to witness a year-over-year decline of 1.7%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.