Stock market analyst have been warning about an imminent market correction for at least a year and a half. Some experts have warned that this correction would be one of the worst stock market downturns in years.
These predictions have not come to fruition, so far. People following the market should not be too surprised, because market analysts aren’t always right. One study found that they were only right 51% of the time when it came to valuing individual securities. Their analyses can certainly be helpful, but they shouldn’t be taken as gospel. If you believe in the efficient market hypothesis, then their predictions are pretty much useless by the time they are aired. Their ability to predict broader market trends has proven to be even more suspect and often includes a lot of their own bias.
The market may not be at its strongest right now, but it is still persevering. There is a good chance that it will trend upwards. If we head into a bull market, then it is a good idea to consider purchasing some leisure stocks, because they have great beta coefficients and have the potential to perform well during an upwards market.
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Top Recommended Leisure Stocks for 2020
Despite the ominous predictions some analysts have made, the stock market has been surprisingly resilient. There is a strong possibility that stocks will appreciate even further in the near term. Investors that take long positions may want to consider allocating a larger share of their portfolio to equities. As long as the market is likely to perform strongly, leisure stocks might be good to add to your portfolio. Here are some leisure stocks that can make great additions to your portfolio.
Johnson Outdoors has proven to be a very stable stock over the past couple of years. The value of the stock rose around 1.3% year over year. Over the same time period, The S&P 500 has dropped around 1%.
The stock has been on the radar of many analysts since 2017. Motley Fool wrote a stunning report about how the price of this stock rose 26% in the summer of last year. Three months ago, Zacks wrote a strong recommendation for the stock, citing higher than expected earnings reports.
The stock seems to be correlated with the direction of the market. It has a three-year beta coefficient of 1.10, so it might be a good stock to add to your portfolio if you expect the market to remain healthy.
Marine Products Corp. is the highest rated stock in its industry by The Street. In fact, is the only recreational and leisure stock to receive an A+ rating with the publication.
The stock has proven itself worthy of strong recommendation over the past year. Year-over-year charts show that the share price rose from $15 to $17. This would be a remarkable return in any market.
Should you invest in this stock during a vibrant economy? It has a three-year beta coefficient of 0.52. This may not be as high as a lot of other leisure stocks, but this still means it tends to be strongly correlated with the direction of the market.
Home Leisure Direct is one of the fastest growing recreational and gaming retailers. It was started on a bootstrapped budget by Andy Beresford and became a $10 million business.
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“Years before I started out the business, I wanted to get a pool table and it was very difficult. There were no good websites that you could go on for advice, they didn’t have photographs, prices, or any useful details about the product. So, when my wife and I started thinking about setting up our own company, the idea of a home entertainment supplier came to mind,” he told Sun Online.
The company has not gone public yet, but it might be a promising one to look at when it does. If the IPO is timed with a bull market, then there is a good chance that investors will make a very nice ROI from it.
Expedia has been a popular leisure stock for years. In July, analysts strongly recommended the stock to long investors. They pointed out that the YTD earnings of the stock was 6.16%. Although this was a little lower than its historical average, the performance was still better than the market as a whole.
Expedia seems to be a great stock to invest in during a bull market. Consumers are more likely to take flights during a strong economy. The three-year beta of the stock is 0.94, which means it is likely to perform well during a bull market.