3 Top Leisure Stocks Worth Watching Right Now
As we kick off the four-day trading week, the stock market appears to be taking a breather. Accordingly, even as investors wonder why are stocks down, leisure stocks could make for a viable play now. For the most part, two key factors could be contributing to the current movement in stocks. Firstly, virus-related restrictions across the globe are ramping up as highly infectious variants run rampant this holiday season. To point out, the Netherlands is now in a full lockdown until mid-January. At the same time, Germany is limiting travel into the country to German citizens and residents mostly. Alongside these countries, the likes of Ireland, Spain, and Austria are already discussing and/or implementing similar countermeasures.
Furthermore, there is also the matter of President Joe Biden’s Build Back Better (BBB) social policy bill to consider. Earlier today, news broke of Senator Joe Manchin not supporting the $1.75 billion bill, essentially killing it. Manchin cites growing concerns about inflation, the national debt, and the pandemic for this stance. Now, investors may be looking for stocks that stand to gain amidst the current market conditions. Well, for one thing, with consumers likely staying home this holiday season, leisure stocks could be worth considering.
By and large, this is apparent as consumers are spoilt for choices when it comes to stay-home leisure activities now. For instance, we could look at video streaming firms such as Fubo (NYSE: FUBO). Earlier today, the company launch its Fubo Sportsbook in Arizona. In turn, local sports fans can now place wagers on their favorite live sporting events virtually. Meanwhile, consumers could also be turning towards cannabis providers like Canopy Growth (NASDAQ: CGC) amidst these stressful times as well. With all that said, could one of these leisure stocks be top picks in the stock market today?
Top Leisure Stocks To Watch Ahead Of 2022
- Walt Disney Company (NYSE: DIS)
- Penn National Gaming Inc. (NASDAQ: PENN)
- Tilray Inc. (NASDAQ: TLRY)
Walt Disney Company
Disney is a leisure company that owns a multinational entertainment and media business. The company has established itself as a leader in the American animation industry before diversifying into live-action film production, theme parks, and streaming. Notably, its Walt Disney Studios includes some of the biggest film studios in the industry like Walt Disney Animation Studios, Pixar, Marvel Studios, and Lucasfilm. DIS stock currently trades at $146.34 as of 2:20 p.m. ET.
Last month, the company reported its fourth-quarter and full-year earnings for fiscal 2021. Diving in, revenues for the quarter were $18.53 billion, increasing by 26% year-over-year. Net income for the quarter was $160 million compared to a loss of $710 million a year earlier. Diluted earnings per share from continuing operations for the quarter was $0.09. The company also ended the quarter with a free cash flow of $1.52 billion.
Overall, CEO Bob Chapek said, “This has been a very productive year for The Walt Disney Company, as we’ve made great strides in reopening our businesses while taking meaningful and innovative steps in Direct-to-Consumer and at our Parks, particularly with our popular new Disney Genie and Magic Key offerings”. He adds, “As we celebrate the two-year anniversary of Disney+, we’re extremely pleased with the success of our streaming business, with 179 million total subscriptions across our DTC portfolio at the end of fiscal 2021 and 60% subscriber growth year-over-year for Disney+. We continue to manage our DTC business for the long-term, and are confident that our high-quality entertainment and expansion into additional markets worldwide will enable us to further grow our streaming platforms globally.” Given this piece of news, is DIS stock worth watching right now?
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Penn National Gaming Inc.
Following that, we have Penn National Gaming, an operator of casinos and racetracks across the U.S. and Canada. In fact, it is one of the largest regional gaming operators in North America. Furthermore, it is a highly innovative provider of retail and online gaming, sports betting, live entertainment, and hospitality. Penn’s omnichannel approach is further bolstered by the mychoice loyalty program, which rewards and recognizes its over 24 million members for their loyalty to both retail and online gaming products. PENN stock currently trades at $47.08 as of 2:21 p.m. ET.
On November 22, 2021, the company announced that it expects to open Hollywood Casino Morgantown to the public on Wednesday, December 22 at noon, pending final regulatory approvals. The approximately 80,000 square-foot facility will feature 750 of the company’s latest slot machines and 30 table games, a state-of-the-art Barstool Sportsbook, and three unique dining options. At the Barstool Sportsbook, patrons will be able to enjoy sports from around the world on the jumbotron above the bar or numerous high-definition televisions throughout the facility.
Also, the company reported its third-quarter financials last month. Firstly, revenue for the quarter was $1.5 billion, an increase of over 30% from a year ago. Net income for the quarter was $86.1 million while adjusted EBITDA was $364.3 million. In light of this strong quarter, the company says that it has also successfully launched the Barstool Sportsbook mobile app in five states, which more than doubled its footprint. All things considered, will you consider adding PENN stock to your portfolio?
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Tilray Inc.
Another name to consider among the top leisure stocks in the stock market now would be Tilray. In brief, it is a major player in the global cannabis-lifestyle and consumer goods markets. For a sense of scale, the company’s operations currently span Canada, the U.S., Europe, Australia, and Latin America. All of which work towards delivering its comprehensive portfolio of cannabis-based offerings to consumers in over 20 countries via over 20 brands.
As it stands, TLRY stock currently trades at $7.44 as of 2:21 p.m. ET. Despite the current weakness in its shares, Tilray continues to press forward on the operational front. Just this month, Tilray launched a new edible hemp-based food offering and made a notable U.S. acquisition. For starters, the company now offers hemp hearts via its Manitoba Harvest subsidiary. According to Tilray, its hemp hearts “offers a simple way to support overall wellbeing by enhancing the nutritional value of holiday favorites”. Coming in the form of small seeds, Tilray’s latest product serves as an add-on to a large variety of meals. Not to mention, it also compliments vegan, keto, paleo, and gluten-free diets, appealing to a larger array of consumers.
The company also acquired Breckenridge Distillery (BD) earlier this month as well. BD is an award-winning producer of distilled spirits. According to Tilray, the acquisition serves to expand its U.S. offerings “into the on-trend spirits category”. All in all, it seems like Tilray is firing on all cylinders now. Could this make TLRY stock a top watch in your books?
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