Market Overview

Recreation Stocks Surge As Americans Head Outdoors After COVID-19 Lockdowns

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Recreation Stocks Surge As Americans Head Outdoors After COVID-19 Lockdowns

Dick’s Sporting Goods Inc (NYSE: DKS) was quick to bounce back from the market’s early COVID-19 plunge, and Sportsman’s Warehouse Holdings Inc (NASDAQ: SPWH) proved wholly resilient to the lockdown-related fallout.

How else were locked-down Americans to socially social distance but in the open air? Especially as the weather warmed, camping became “the perfect COVID vacation,” according to CNBC’s Jim Cramer. Restless consumers also settled for solo sports.

Callaway, SeaWorld Among Rec Stocks Moving 

Golf fanatics — and even those typically partial to more active exercise — rushed the links or Callaway Golf Co (NYSE: ELY)’s isolated TopGolf pods to get their social fix and exercise. Calloway rebounded, and Acushnet Holdings Corp (NYSE: GOLF) more than recovered its March dip. Some have forecasted a sustained surge in golf stocks.

“TopGolf is gonna kill it,” said Chris Camillo, founder of TickerTags and host of "Dumb Money LIVE."

“Callaway is ideally positioned ... this is the summer of golf."

This week, as states continued to loosen lockdown restrictions, more businesses reopened  and the balmy weather inspired optimism for a relatively normal summer, indoor entertainment companies joined the rally. Dave & Buster’s Entertainment Inc (NASDAQ: PLAY) surged 22.36% on Thursday, while casino operator Eldorado Resorts Inc (NASDAQ: ERI) spiked 10.44%.

Outdoor crowd-drawing venues also popped: SeaWorld Entertainment Inc (NYSE: SEAS) gained 5.06%.

Notably, theaters traded down despite their parallel trajectory with entertainment stocks earlier in the week. AMC Entertainment Holdings Inc (NYSE: AMC) dipped 1.28% Thursday. 

Related Links:

Why Penn National And Boyd Could Outperform As US Casinos Reopen

4 Stocks Poised To Breakout With The Return Of Live Sports

 

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