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, Adidas ADDYY, and Under Armour UAA. Along with these industry giants, Lululemon LULU 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, 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, Walmart WMT-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 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 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 The North Face and Canada Goose GOOS.
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 is also a Zacks Rank #1.
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Johnson Outdoors Inc. (JOUT) : Free Stock Analysis Report
Canada Goose Holdings Inc. (GOOS) : Free Stock Analysis Report
lululemon athletica inc. (LULU) : Free Stock Analysis Report
Walmart Inc. (WMT) : Free Stock Analysis Report
DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
Adidas AG (ADDYY) : Free Stock Analysis Report
NIKE, Inc. (NKE) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Columbia Sportswear Company (COLM) : Free Stock Analysis Report
V.F. Corporation (VFC) : Free Stock Analysis Report
Under Armour, Inc. (UAA) : Free Stock Analysis Report
YETI Holdings, Inc. (YETI) : Free Stock Analysis Report
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