The Zacks Analyst Blog Highlights: Clarus, SeaWorld, Lindblad, Live Nation And Malibu Boats

For Immediate Release

Chicago, IL –April 2, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Clarus Corporation (NASDAQ:CLAR) , SeaWorld Entertainment, Inc. (NYSE:SEAS) , Lindblad Expeditions Holdings, Inc. (NASDAQ:LIND) , Live Nation Entertainment, Inc. (NYSE:LYV) and Malibu Boats, Inc. (NASDAQ:MBUU) .

Here are highlights from Monday’s Analyst Blog:

5 Promising Leisure Stocks to Buy This Spring Despite Risks

With the spring underway, investors may want to focus on a few travel and leisure companies as these primarily cater to warm weather activities. Demand for cruises, outdoor activities, travel, ski, boating, to name a few, generally accelerate during this time of the year. Apart from favorable weather, spring break holidays also drive demand for such services.

However, it should be noted that this demand is purely subject to general economic conditions. Elastic demand is highly dependent on the business cycle and derives momentum from a healthy labor market, rising wages and growing disposable income.

Current Economic Scenario

Per a few analysts, the U.S. economy in 2019 can be characterized as a Goldilocks scenario, where the system is operating in an optimal state by providing full employment and economic stability. The economy is neither too dull to cause recession, nor too bright to result in inflation.

The U.S. economic outlook is healthy according to key economic indicators. The economy has an ideal GDP growth rate of 2-3% and moderately rising prices, as measured by the core inflation rate. The Federal Reserve has set the target inflation rate for 2019 at 2%.

Although, the country’s GDP growth is likely to slow to growth of 2.1% in 2019 from 3% in 2018 (per the Federal Open Market Committee meeting), unemployment, which is at 3.7%, will continue to support overall economic spending.

In the fourth quarter of 2018, personal consumption expenditure (PCE) contributed 1.66 percentage points to overall growth and rose 2.5%. Although 2019 may witness a subdued economic growth, recession and restrained demand is unlikely. Both Fed's monetary policy and Congress' fiscal policy aim to create enough demand to keep the economy whirring at a healthy pace.

Strong Demand to Facilitate Growth in the Leisure Space

Apart from higher personal expenditure, increased demand for leisure products and services is also aiding the leisure industry of late. According to a report by Statista, revenues at the sports and outdoor space are expected to witness a CAGR of 9% from 2018 to 2023. User penetration stood at 12.2% in 2018 and is expected to reach 16.7% by 2023.

Per Deloitte, retailers of leisure goods have been witnessing robust growth since 2010. Furthermore, a report by Global Market Insights suggests that the boating market share in the United States will surpass $28.5 billion by 2024. National Marine Manufacturers Association had also mentioned that boat manufacturers are continuously increasing production to support high demand. Demand for powerboats, including small sterndrive, wakeboard boats and smaller fiberglass boats with jet technology is rapidly increasing.

The cruise industry in 2019 is likely to benefit from increased travel demand. The role of technology is playing a massive role in driving demand for cruises. The companies continue to make use of digital tools for marketing, product development and enhancing consumer experience.

Moreover, Royal Caribbean noted that the Wave Season has witnessed a solid start and overall booking in 2019 is likely to exceed the record mark in 2018. Original post

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Written By: Zacks Investment Research