A strong economy and rising employment rates mean that people have more disposable income than ever. This is good news for companies in the leisure space, which are seeing their sales boom as a result. The global leisure and hospitality sector is expected to grow by more than 6% annually through 2021. Whether you’re looking for ideas on how to spend your downtime or want to invest in some affordable stocks to pad your portfolio, these four leisure stocks could be just what you need right now. These companies are growing thanks to a rapidly thriving industry and should continue seeing new opportunities in the future. Whether you’re looking for ideas on how to spend your downtime or want to invest in some affordable stocks to pad your portfolio, these four leisure stocks could be just what you need right now.
Carnival Corp.
Carnival Corp. owns and operates a fleet of cruise ships and is the world’s largest cruise operator. While it’s the largest and the most affordable cruise operator, making it a great investment for folks seeking low-risk stocks. It expects strong growth in its cruise business thanks to an improving global economy, which means more people travel than ever before. Carnival Corp. is also investing in new ships and exploring more destinations, which should also help boost sales. It makes sense to invest in these stocks now since the company is expected to earn $3.85 per share in 2020, more than double its $2.11 per share in earnings in 2017. Carnival Corp. is also very affordable, with a price-to-earnings ratio of just 11.5.
Viacom Inc.
Viacom owns six major brands, including MTV, Nickelodeon, Comedy Central, and Paramount Pictures. Thanks to its strong brand, Viacom is expected to see robust sales for years, making it a great long-term investment. Viacom is looking to take advantage of the growth in emerging markets and will continue investing in its content, particularly in producing new and original shows. Viacom aims to double its operating income by 2021, which means it could turn into one of the best leisure stocks to buy over the next few years. In addition to Paramount Pictures, Viacom owns assets like BET, Comedy Central, VH1, and many more. Viacom is a great investment thanks to its strong brands, which should continue seeing robust sales for years. Expect Viacom to continue investing in its content, particularly in producing new and original shows, to ensure its long-term success.
The Walt Disney Co.
The Walt Disney Co. is another media company that owns brands like ESPN, Marvel, and Pixar. It also owns theme parks, cruise ships, and film production companies, making it a diversified entertainment and leisure giant. The company has a long history of dominating the leisure and hospitality industry, which makes it a safe investment. Since Disney has been in the business for years, it has extensive knowledge of what customers want and how to appeal to them. The company is expected to continue leveraging its brands and using advanced technologies to improve and expand its offerings. While Disney is a great investment, it’s also one of the most expensive stocks. It comes with a high price tag and may not be affordable for everyone. Nevertheless, Disney could be the right choice ifHowever, if you’re looking for a high-risk, high-reward stock.
Electronic Arts Inc.
Electronic Arts Inc. publishes video games and is best known for franchises like FIFA, Battlefield, and Madden. The company is expected to continue to see robust sales thanks to strong brand recognition and a growing interest in esports. Over the next few years, sales are expected to grow by a robust 17% annually, making this a great long-term investment. In addition, electronic Arts have proven itself as a top video game publisher thanks to strong brand recognition and a growing interest in esports. As a result, it’s a great long-term investment thanks to robust sales growth expected over the next few years. EA is the right choice if you’re looking to invest in the esports industry, thanks to its robust sales and focus on the growing industry. It’s also a very affordable stock, which makes it accessible to all types of investors.
Bottom line
There are many benefits to investing in the leisure sector, including its high-profit margins, low risk, and high growth potential. Companies in this sector are seeing soaring sales thanks to a growing global economy and a higher propensity for leisure activities. In addition, these stocks are great long-term investments thanks to their strong brands and commitment to customer satisfaction. While affordable and offer high returns, they also come with low risk.
Read More: Top Leisure Stocks to Buy Now and Hold