Flight To Nature
In March of this year when we began to see restrictions on travel, social gatherings, businesses closing, and employees working from home, the trends emerging from COVID-19 started to become clear.
Technology related companies such as Zoom, Netflix, Peleton, and Teladoc Health were already positioned to benefit thanks to the coronavirus amplifying these trends.
With restrictions on travel as well as limited options for entertainment, it seems that local areas of interest have become more popular than ever. Especially locations that are known for outdoor recreation.
I consider myself an avid outdoorsman as I love to fly fish many of the rivers, streams, and lakes throughout Western Canada. Some of the harder to get to places I've regularly visited over the last 10 years were once great places to get away from the crowds. Not so much anymore.
This summer I've seen more people than ever in areas that were considered sparsely visited. And these people are not traveling light. New trucks, trailers, RVs, boats, mountain bikes, and outdoor gear such as Yeti coolers and mugs can be seen on and off the beaten track.
This got me thinking about investment opportunities so I decided to look at some of the outdoor recreation-related companies such as Yeti (YETI), Camping World (CWH), Winnebago (WGO), Dicks Sporting Goods (DKS), Marinemax (HZO), Fox Factory (FOXF), BRP Inc. (DOOO), and Thor Industries (THOR).
The three-month performance of these companies' stocks has been impressive.
Will these recreation related companies continue to capitalize on the outdoor movement that's taking place? Or is it a short-term trend that will fade when travel by air becomes more accepted and people are free to go back to their regular vacation spots?
I think for now it's safe to say that these names are worth paying attention to as we continue to live in this COVID-19 world.
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