The leisure and recreation products industry is in the consumer-discretionary sector, but to many of us, these companies provide products and services we feel we must have in our everyday lives. The consumer-discretionary sector is 16.1% overvalued with the leisure and recreation products industry 31.6% overvalued.
In my article on Tuesday, I gave the consumer-discretionary sector an equal-weight rating, and today I provide buy-and-trade profiles for five stocks in the recreation industry.
Reading the Table
OV / UN Valued - The stocks with a red number are undervalued by this percentage. Those with a black number are overvalued by that percentage according to ValuEngine.
VE Rating - A "1-Engine" rating is a Strong Sell, a "2-Engine" rating is a Sell, a "3-Engine" rating is a Hold, a "4-Engine" rating is a Buy and a "5-Engine" rating is a Strong Buy.
Last 12-Month Return (%) - Stocks with a Red number declined by that percentage over the last twelve months. Stocks with a Black number increased by that percentage.
Forecast 1-Year Return - Stocks with a Red number are projected to decline by that percentage over the next twelve months. Stocks with a Black number in the Table are projected to move higher by that percentage over the next twelve months.
Value Level: is the price at which to enter a GTC Limit Order to buy on weakness. The letters mean; W-Weekly, M-Monthly, Q-Quarterly, S-Semiannual and A- Annual.
Pivot: A level between a value level and risky level that should be a magnet during the time frame noted.
Risky Level: is the price at which to enter a GTC Limit Order to sell on strength.
Brunswick ($32.80) set a multiyear high at $37.37 on Feb. 15 and then held its 200-day simple moving average at $30.01 on June 21. Before any family picnic, you may be on a lake or at the beach with a boat made by Brunswick, or at the gym using fitness equipment. If it's raining, you may want to go bowling at a local Brunswick Bowling Center. My quarterly value level is $30.69 with a semiannual pivot at $33.55 and semiannual risky level at $39.56. The weekly pivot was tested on Tuesday.
Calloway Golf ($6.72) set a multiyear high at $7.30 on Feb. 11, and then tested and held its 200-day SMA since mid-April when this average was $6.28. When I lived on Long Island, I liked to play a round of golf in the early morning of July 4th. Although I do not use Calloway golf clubs or balls, this brand is very popular at country clubs. As long as I made it home in time for the family picnic, all was well in my household. My annual value level is $6.30 with a weekly pivot at $6.56 and monthly risky level at $7.84.
Pool Corp ($53.84) set a multiyear high at $54.88 on June 18. If you own a swimming pool, perhaps it was built using materials from Pool Corp. Pool also provides maintenance products and services to keep your pool in tip-top shape for your Fourth of July party and family picnic. My semiannual value level is $52.56 with a monthly pivot at $53.28 and weekly risky level at $54.07, which was tested on Tuesday.
Sturm Ruger ($47.23) has been moving sideways to down since setting a multiyear high at $60.11 on Nov. 30. If you go to a rifle range for skeet shooting, traps or sporting clay, perhaps you will use a rifle made by this company. It also makes hunting rifles and pistols for target practice. My annual value level is $30.99 with a semiannual level at $47.53 and a semiannual risky level at $48.97.
At the time of publication the author held no positions in any of the stocks mentioned.
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.