Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into three sports and outdoor-focused retail stocks that look like strong buys right now.
Everyone knows Nike (NKE - Free Report) , Adidas (ADDYY - Free Report) , and Under Armour (UAA - Free Report) . Along with these industry giants, Lululemon (LULU - Free Report) has risen to prominence as the broader athleisure market continues to expand. In fact, LULU is coming off blowout fourth-quarter earnings and is currently a Zacks Rank #1 (Strong Buy). But today we are going to talk about a few companies that also appear to be strong buys right now that get a bit less love.
The first company that we dive into is Yeti (YETI - Free Report) , which as its name might suggest, is a cooler company that was founded in 2006. The Austin, Texas-based firm sells heavy-duty coolers geared toward commercial fishermen that cost as much as $1,300. Yeti’s extensive line of hard and soft coolers also appeal to more everyday users and the company has expanded far beyond its original business.
Yeti products can be found in Dick’s Sporting Goods (DKS - Free Report) , Walmart (WMT - Free Report) -owned Moosejaw, Bass Pro Shops, and many other retailers in the U.S., Canada, Australia, and elsewhere. The firm also opened its first flagship store in 2017 and has seen its direct-to-consumer business boom over the last year. Plus, Yeti has seen its stock price soar over 70% since going public in October 2018, and its positive earnings outlook helps it earn a Zacks Rank #1 (Strong Buy) at the moment.
Along with Yeti, shares of Deckers Outdoor Corporation (DECK - Free Report) have surged 63% over the last 12 months to crush the S&P 500. The company owns Ugg, Teva, and other brands. The firm’s Q3 fiscal 2019 net sales popped 7.8%, driven in part by massive growth from its HOKA ONE ONE running and hiking footwear unit. HOKA ONE ONE could continue to expand through innovate partnerships, which includes working with an up-and-coming Lululemon competitor. Deckers Outdoor is also a Zack Rank #1 that boasts some other solid fundamentals.
The last company we dive into is likely the most familiar. Columbia Sportswear (COLM - Free Report) is up 36% over the last year and 24% in 2019 alone. The recent positivity stems from impressive Q4 earnings and solid full-year results. Columbia’s sales surged 14% in 2018 to a record $2.80 billion. This is a good sign for the company, which also owns Mountain Hardwear and Sorel, as it fights to compete with V.F. Corporation’s (VFC - Free Report) The North Face and Canada Goose (GOOS - Free Report) .
Like its peers,COLM is a Zacks Rank #1 right now based mostly on its earnings estimate revisions activity. Meanwhile, kayak, camping equipment, and scuba gear maker Johnson Outdoors (JOUT - Free Report) is also a Zacks Rank #1.
As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at email@example.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year?
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.
See Stocks Today >>