People are chomping at the bit to finally get outside after months of hunkering down during quarantine. One saving grace for many was the fact that the nationwide lockdown from work, school, and general public activity took place during the cooler months of late winter and spring.
With such precautions beginning to calm down and the weather starting to heat up, there’s excitement in the markets surrounding outdoor stocks. Here are a few companies that might be poised to benefit this summer.
Yeti Holdings Inc (NYSE: YETI) is one of the most well-known outdoor sporting companies on the market. Its most popular products include ice chests, drinkware and other naturistic accessories that are suited for activities like camping, fishing and spending time with the family outdoors.
With people able to get outside as the summer months hit, Yeti could recover nicely from the roughly 15% drop off it experienced during the coronavirus’ most fierce months.
Chris Camillo, founder of TickerTags and host of "Dumb Money LIVE," thinks Yeti’s public exclusivity in its specific industry creates opportunities.
"This summer, anyone that makes anything related to taking your drinks outside, or keeping your drinks cool in your boat, or on a camping trip, or at the lake house, or just out by the pool is gonna kill it," he said. "And none of those other stocks are public, (but) Yeti is."
Callaway Golf Co (NYSE: ELY) doesn’t necessarily stand out from other golf brands, such as Nike (NYSE: NKE) or Adidas (OTC: ADDYY), from an apparel or equipment perspective. But one of its most lucrative assets is TopGolf, the indoor golf and entertainment craze.
Over the past few years, TopGolf has grown to become one of the most popular spots for hanging out with friends, parties and more.
Callaway has given up around 20% in value since the start of the coronavirus and is trading around the $15.50 level. Due to TopGolf’s ability to maintain small group settings in a semi-outdoor environment, it may be ahead of its entertainment competitors in being allowed to open up shop.
Camillo commented on the show that he sees TopGolf’s efficiency as a catalyst in its tremendous growth over the past few years.
“TopGolf is gonna kill it,” he said. “Callaway is ideally positioned...this is the summer of golf."
Many people will finally be able to kick back and have a cold drink with friends once again. And, of course, no drink feels like summer more than tequila.
Thus, there is plenty of potential for Diageo plc (NYSE: DEO), owner of Don Julio and CasaMigos, to see success. Since the onset of serious restrictions due to the coronavirus pandemic in late February, the stock’s value has dropped roughly 12%. Buyers may be interested in buying the dip here with lockdowns being lifted and outdoor bars starting to get more and more full.
Camillo, while analyzing recent spikes in tequila and margarita drinking activity in the country, noted CasaMigos specifically is a top asset for Diageo.
“It’s been astonishing to watch what CasaMigos has done over the past couple of years in terms of their marketing effort. They’ve been just killing it,” he said.
“I think Diageo is really well positioned as part of the great outdoor trade of 2020.”
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