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Some stocks could experience a stronghold as the warmer months approach.
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Stocks in the leisure and recreational industry are set for another record year.
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Tourism and hospitality will be able to bounce back from pre-pandemic levels with more open borders and international travel.
While the warmer months bring a bit of change to our routine, perhaps adding a few new stocks to your summer portfolio is just what you might need this year.
During the summer months, family destinations such as theme parks, resorts, hotels, and restaurants are seeing thousands of new visitors each day. With this in mind, you will also likely see tourism return to somewhat normal during this time, as the warmer climate attracts almost millions of foreign tourists to popular destinations all over the country.
While families are planning their big trips, you should start looking at some of these summer stocks to add to your portfolio.
Pool Corp (NASDAQ: POOL)
The American-based Pool Corp recently published its fourth-quarter earnings which increased from $59.2 million in 2020 to more than $107.6 million. The company also saw its share earnings climb from $1.45 to $2.65,
The company is one of the largest distributors of pool equipment and accessories with more than 395 locations across the world, and employees more than 4,500 people.
So why buy POOL?
It’s quite obvious that during this time more people tend to undertake maintenance on their pools as they frequently use them throughout the warmer months. The company has sales centers across the world, including Europe and Australia with an extensive list of distributor networks including Super Pool Product and Horizon Distributors, among others.
The Zacks Leisure and Recreation Products has indicated that Pool Corp is among other leading brands that will benefit from this years’ economic recovery, with leisure and recreation poised to undergo a record year. With U.S. unemployment levels at pre-pandemic levels of 3.9% consumers might look to spend more money on leisure and recreational activities during the summer months.
POOL is a low-risk stock, and something which you can purchase and easily sell-off again. While most other popular summer stocks, such as hospitality and tourism are affected by consumer trends, and as we’ve seen during the early years of the pandemic, POOL falls under the recreational industry, an industry worth more than $689 billion according to The Bureau of Economic Analysis.
Avis Budget Group (NASDAQ: CAR)
Avis saw its revenue for 2021 increase by more than 90% in its recent fourth-quarter earnings report, at $2.6 billion. The company also saw its highest revenue increases, with a 72% revenue increase compared to the year prior with revenues reaching $9.2 billion.
“Our strong performance continued in the fourth quarter with all of our key metrics beating pre-pandemic levels in the Americas,” said Joe Ferraro, Avis Budget Group Chief Executive Officer.
The sudden increase in revenue and earnings is mainly due to the relaxed travel restrictions and removal of travel bans across the world during the summer of 2021. Additionally, some countries such as here in the U.S. saw their residents enjoy summer vacations abroad for the first time in a while, with excess stimulus and savings.
Earlier in February investors and stakeholders were rejoiced with the announcement made in The New York Times that a new California state law could impose additional fees for extra passengers that could increase auto-rental agencies’ revenues for the upcoming year.
While Avis has not yet made any comments on the situation on whether they will impose these new fees or not in the state of California, it’s not without noticing that the company is set for perhaps a record-breaking year as more and more countries are lifting travel restrictions for foreigners.
SunRun (NASDAQ: RUN)
California-based residential solar panels and home batteries provider SunRun is currently among one of the most affordable renewable energy and solar stocks available.
In a recent analysis, brokerage experts estimate that SunRun will post sales of around $390.04 million for the current quarter. Some analysts are optimistic that the company will perhaps post higher earnings above $420 million.
For the same quarter last year, RUN posted sales of more than $330 million, with a year-over-year growth rate of 16.5%. The company has experienced positive sales and increasing revenue in recent years as demand for more renewable energy resources for residential purposes increased.
It hasn’t taken solar and wind stocks to soar as soon as the Brent crude oil price increased due to the ongoing tension between Russia and Ukraine. It led to not only RUN, but other major solar and wind power companies seeing a sudden spike in share prices.
RUN saw its share price jump by more than 6% in single day trading at the start of March. Market volatility has seen prices decrease a bit during the week, but overall RUN is currently positioned for a stellar year.
Renewable and green energy has been on the agenda for most investors this year, looking for shares that can help decarbonize their portfolios.
We can expect that the upcoming months will bring new challenges for the market, but as summer starts to approach, we might experience a jump as consumer spending increases, tourism and hospitality take off, and companies reap better seasonal earnings.
This article was originally posted on FX Empire
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