In this article, we will look at the 12 Best Leisure Stocks to Buy Right Now.
Overview of the Global Leisure Industry
According to Allied Market Research, the global leisure travel market had a market size of $1.2 trillion in 2023. It is anticipated to grow at a compound annual growth rate of 18.3% between 2024 and 2033, reaching $6.2 trillion by the end of the forecast period. The rise of social media is one of the key reasons behind the continued growth in leisure travel, as people are gaining increasing awareness and exposure to various industry trends.
The outdoor leisure market is another significant industry in the domain. Outdoor leisure encompasses recreational open-air activities typically conducted in semi-natural or natural environments. According to Business Research Insights, the market was valued at around $13.15 billion in 2024 and is expected to grow at a compound annual growth rate of 6.95% between 2025 and 2033, reaching $24.07 billion by the end of the forecast period.
READ ALSO: 10 Best Video Game Stocks to Buy Now and 12 Best Grocery Store Stocks to Buy Now.
How is the American Consumer Behaving?
A report by Deloitte showed that the leisure industry continued to rebound in fiscal Q3 2024, with total net expenditure increasing from -10.3% in fiscal Q2 2024 to -8.5% in fiscal Q3 2024, reaching the highest level since fiscal Q1 2022. The report showed that nine out of eleven leisure categories reflected increased spending, with short holidays and eating out topping the charts with a 4.7 and 5.5 percentage points increase, respectively.
Although long vacations decreased in popularity due to economic uncertainties and growing expenses, short vacations gained public acknowledgment, as consumers are prioritizing affordability. Casual dining rose by 1.7% year on year, with three new locations opening each week. In addition, live sports, festivals, and concerts drove a 4.1 percentage point increase in net spending on culture and entertainment. Leisure activities at home and pub spending also showed increases, climbing by 1 and 1.7 percentage points, respectively.
However, Deloitte Consumer Tracker anticipates consumer spending to fall in nine out of eleven categories in fiscal Q4 2024. Longer holidays and eating out are expected to have the highest fallout, with a decrease of -8.1 points and -5.9 points, respectively. Cautious consumer spending amid potentially rising inflation and economic uncertainties is anticipated to affect the hospitality industry, necessitating value-driven tactics to attract consumers.
With these trends in view, let’s look at the 12 best leisure stocks to buy now.
A family happily enjoying a theme park ride, showing the joy of experiential leisure travel.
Our Methodology
We sifted through stock screeners, online rankings, and ETFs to compile a list of 25 leisure stocks. We then selected the top 12 with the highest number of hedge fund holders as of fiscal Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12 Best Leisure Stocks to Buy Right Now
12. OneSpaWorld Holdings Limited (NASDAQ:OSW)
Number of Hedge Fund Holders: 29
OneSpaWorld Holdings Limited (NASDAQ:OSW) is a health and wellness services company that operates in around 195 cruise ships at approximately 50 destination resorts around the globe. Its services include self-service fitness facilities, salons, skin care, traditional body services, pain management, comprehensive body composition analyses, detoxifying programs, advanced medi-spa services, and more. The company’s brand portfolio encompasses ELEMIS, Kerastase, BOTOX Cosmetic, Dysport, Restylane, Perlane, Thermage, CoolSculpting, truSculpt 3D, and truSculpt iD, and others. OneSpaWorld Holdings Limited (NASDAQ:OSW) operates on several cruise lines, including Costa Cruises, Norwegian Cruise Line, Regent Seven Seas Cruises, and Seabourn Cruise Line, and more.
The company reported strong fiscal Q4 2024 results, with total revenues growing 11% to $217.2 million compared to $194.8 million in fiscal Q4 2023. Total revenues for 2024 increased 13% to a record $895 million compared to $794 million in fiscal year 2023. Similarly, income from operations rose 37% to $17.2 million compared to $12.6 million in fiscal Q4 2023.
Fiscal 2024 marked the second consecutive year of record performance by OneSpaWorld Holdings Limited (NASDAQ:OSW). The company’s positive operations are attributed to its strong financial position, innovation across its business portfolio, and global operations. The company ranks 12th on our list of the 12 best leisure stocks to buy right now.
Ariel Small Cap Value Strategy stated the following regarding OneSpaWorld Holdings Limited (NASDAQ:OSW) in its Q4 2024 investor letter:
“Provider of wellness services onboard cruise ships and destination resorts, OneSpaWorld Holdings Limited (NASDAQ:OSW), also traded higher as strong consumer trends drove another significant earnings beat and subsequent raise in full year guidance. Meanwhile, management strengthened the balance sheet by paying down and restructuring its expensive first lien term loan as well as ramped up capital returns to shareholders through buybacks and dividends.”
11. Mattel, Inc. (NASDAQ:MAT)
Number of Hedge Fund Holders: 30
Mattel, Inc. (NASDAQ:MAT) is a global toy company that owns catalogs of children’s and family entertainment franchises. The company’s brands include Hot Wheels, Barbie, American Girl, Fisher-Price, Thomas & Friends, UNO, Masters of the Universe, MEGA, and other owned or licensed intellectual properties in partnership with global entertainment companies. The company’s offerings also include television and film content, music, gaming and digital experiences, and live events. Mattel, Inc.’s (NASDAQ:MAT) products are offered in over 150 countries.
The company reported a 2% increase in revenue in fiscal Q4 2024 and an adjusted EPS of $0.35, beating analyst estimates. It is also ahead of schedule in achieving its $200 million cost-savings target by the end of 2026. Mattel, Inc.’s (NASDAQ:MAT) 2025 forecast includes net sales growth of 2% to 3% in constant currency and adjusted EPS of $1.66 to $1.72, which reflects an increase of about 2% to 6%.
The company also plans to boost investments in digital games and repurchase $600 million of shares. Through such initiatives, Mattel, Inc. (NASDAQ:MAT) is well-positioned to continue creating long-term shareholder value.
10. Topgolf Callaway Brands Corp. (NYSE:MODG)
Number of Hedge Fund Holders: 33
Topgolf Callaway Brands Corp. (NYSE:MODG) is a golf and active lifestyle company that provides golf entertainment experiences. It also designs, manufactures, and sells active lifestyle and golf apparel and accessories. The company’s brand portfolio includes Topgolf, Callaway Golf, Odyssey, TravisMathew, Jack Wolfskin, OGIO, Toptracer, and World Golf Tour. Its segments include Topgolf, Golf Equipment, and Active Lifestyle.
Despite top-line pressure, the company delivered $337 million in EBITDA and approximately 34% venue-level EBITDA margins in fiscal Q4 2024 at Topgolf. It also delivered over $100 million in free cash flow.
Topgolf Callaway Brands Corp.’s (NYSE:MODG) total company free cash flow reached $203 million, above expectations and further strengthening its financial position. Management expressed confidence in the company’s operations in 2025 on the product side of its business, the health of its Golf Equipment category, and its 2025 product lineup.
9. YETI Holdings, Inc. (NYSE:YETI)
Number of Hedge Fund Holders: 35
YETI Holdings, Inc. (NYSE:YETI) designs, retails and distributes outdoor products. Its portfolio comprises three categories: Coolers & Equipment, Drinkware, and Others. The Coolers & Equipment category comprises soft coolers, hard coolers, outdoor living, bags, cargo, and associated accessories for outdoor leisure activities. The Drinkware segment manages an elaborate product line, including Ramber Mugs, Rambler Colsters, Rambler Wine Tumblers, Rambler Stackable Pints, and more. The Other segment offers a range of apparel and gear.
YETI Holdings, Inc. (NYSE:YETI) has been executing against its strategic priorities over the past 12 months. The YETI consumer and owner studies continually show strong consumer support for the brand and its product expansion strategy. In 2024, the company participated in more than 200 consumer events across the globe, ending the year with roughly 200 global ambassadors and expanding its addressable market.
It also ended the year with a cash position of approximately $360 million, building on its strong balance sheet. In addition, YETI Holdings, Inc. (NYSE:YETI) delivered over $200 million in free cash flow for the second year in a row, and expects another strong year in 2025. It ranks ninth on our list.
8. Life Time Group Holdings, Inc. (NYSE:LTH)
Number of Hedge Fund Holders: 36
Life Time Group Holdings, Inc. (NYSE:LTH) is a lifestyle brand that provides fitness, health, and wellness experiences at its athletic country club destinations, designed as family recreation and spa centers and professional fitness centers in a resort-like environment. The company has a portfolio of over 170 athletic country clubs across Canada and the United States.
It reported an 18.7% growth in total revenue in fiscal Q4 2024 to $663.3 million. This growth was driven by an 18% increase in its membership dues and enrollment fees and a 19.4% increase in its in-center revenue. Its comparable center revenue of 13.5% was the largest of the year, attributed to membership dues and in-center revenue having the most significant growth of the year in fiscal Q4 2024. This trend was a direct result of the significant engagement Life Time Group Holdings, Inc. (NYSE:LTH) is seeing from its members. Center memberships grew 6.4% compared to last year, ending the quarter with more than 812,000 memberships.
White Brook Capital Partners stated the following regarding Life Time Group Holdings, Inc. (NYSE:LTH) in its Q4 2024 investor letter:
“Life Time Group Holdings, Inc. (NYSE:LTH) had a terrific 2024 as the Company became free cash flow positive and operated at a high level, opening new locations and achieving very healthy margins. Here in January, the Company preannounced fourth quarter 2024 results and introduced better-than-expected 2025 guidance. The stock continues to outperform. Interestingly, in this fourth quarter, the Company achieved its long-term leverage ratios ahead of schedule. Given the 25% EBITDA growth expected for 2025 and the capital lightness of its newer ventures, it’s likely there will be a stock buyback or a dividend announced early this year. Lifetime is no longer cheap, but it’s an almost perfect company that is well managed and has a solid future.”
7. United Parks & Resorts Inc. (NYSE:PRKS)
Number of Hedge Fund Holders: 37
United Parks & Resorts Inc. (NYSE:PRKS) is a theme park and entertainment company that owns or licenses a range of recognized brands. These include SeaWorld, Busch Gardens, Aquatica, Discovery Cove, Water Country USA, Adventure Island, and Sesame Place. The company’s portfolio comprises around 13 differentiated theme parks located across Abu Dhabi and the United States.
United Parks & Resorts Inc. (NYSE:PRKS) had around 167,000 guests in fiscal Q4 2024 and 432,000 guests for the fiscal year 2024. It repurchased 9.4 million shares, or approximately 15% of its total shares outstanding in the year, reflecting its history of returning excess cash to shareholders and its strong cash flow generation.
The company has a strong balance sheet. As of December 31, 2024, its net total leverage ratio is 2.94x, and it has approximately $798.4 million of total available liquidity, including approximately $115.9 million of cash on the balance sheet. This gives United Parks & Resorts Inc. (NYSE:PRKS) the flexibility to continue investing in and growing its business. The company ranks seventh on our list of the 12 best leisure stocks to buy right now.
6. Hasbro, Inc. (NASDAQ:HAS)
Number of Hedge Fund Holders: 39
Hasbro, Inc. (NASDAQ:HAS) is a toy and game company that operates through four segments: Consumer Products, Wizards of the Coast and Digital Gaming, Entertainment, and Corporate and Other. The Consumer Products manages the sourcing, marketing, and sale of toy and game products, while the Wizards of the Coast and Digital Gaming segment develops trading cards and digital game experiences based on the Hasbro and Wizards of the Coast properties. The Entertainment segment manages entertainment content.
Hasbro, Inc. (NASDAQ:HAS) has an elaborate list of popular brands, including MAGIC: THE GATHERING, Hasbro Gaming, PLAY-DOH, NERF, TRANSFORMERS, DUNGEONS & DRAGONS, and PEPPA PIG, as well as premier partner brands. It grew in licensing and games in fiscal year 2024 while improving the performance of its toy business.
The company also paid shareholders $390 million in cash dividends and reduced debt by $83 million. It had an operating cash flow of $847 million vs. $726 million in the prior year, driven by improved profitability and working capital. Hasbro, Inc. (NASDAQ:HAS) has plans to release a lineup of toys and games in 2025 to expand its market standing.
5. Planet Fitness, Inc. (NYSE:PLNT)
Number of Hedge Fund Holders: 41
Planet Fitness, Inc. (NYSE:PLNT) franchises and operates fitness centers in the United States. It operates through three segments: Franchise, Corporate-owned stores, and Equipment. The company operates approximately 2,617 stores in 50 states and other countries. It is making significant progress across its operations, growing its system-wide same-club sales by 5.5% in fiscal Q4 2024 and delivering a 19.4% revenue growth.
Planet Fitness, Inc. (NYSE:PLNT) also increased its adjusted EBITDA by 14.4% and added 86 new Planet Fitness clubs system-wide during the quarter, bringing its global club count to more than 2,700 clubs. The company also grew its membership by 1 million members in 2024 to approximately 19.7 million members.
Planet Fitness, Inc. (NYSE:PLNT) recently rolled out an enhanced economic model for operating and owning a Planet Fitness club. This model includes reductions in build costs, extensions of capital investment timelines, and the elimination of certain fees. The model is expected to help the company streamline its operations. It ranks fifth on our list of the 12 best leisure stocks to buy right now.
4. Madison Square Garden Entertainment Corp. (NYSE:MSGE)
Number of Hedge Fund Holders: 46
Madison Square Garden Entertainment Corp. (NYSE:MSGE) is a live entertainment company that provides venues and marquee entertainment content. Its portfolio encompasses a range of venues, including New York’s Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, Beacon Theatre, and The Chicago Theatre. These venues showcase several concerts, sporting events, family shows, and special events for millions of guests annually.
Madison Square Garden Entertainment Corp. (NYSE:MSGE) hosts two professional sports franchises: the National Basketball Association (NBA) Knicks and the National Hockey League (NHL) Rangers. The company also produces, promotes, and presents various sporting events, including college basketball, college hockey, professional boxing, esports, wrestling, mixed martial arts, and more.
The company is seeing strong demand for its offerings in the second half of fiscal year 2025, with consumers increasingly demonstrating their desire for shared in-person experiences. Madison Square Garden Entertainment Corp. (NYSE:MSGE) reported revenues of $407 million in fiscal Q2 2025 and an adjusted operating income of $164 million. The company also welcomed the Rangers and the Knicks for the beginning of their 2024-2025 regular seasons and is seeing positive momentum in its economic arrangements with the teams.
Ariel Fund stated the following regarding Madison Square Garden Entertainment Corp. (NYSE:MSGE) in its Q4 2024 investor letter:
“Lastly, Madison Square Garden Entertainment Corp. (NYSE:MSGE) underperformed in the quarter. Despite the delivery of strong earnings results, shares traded lower following a reduction to fiscal 2025 adjusted operating income guidance. The revision was driven by unique circumstances surrounding concert tour cancellations and higher costs associated with bringing sponsorship sales in-house. Nonetheless, with marquee assets such as New York’s Madison Square Garden, Radio City Music Hall, Beacon Theatre and The Chicago Theater, we believe MSGE is well positioned to capitalize on strong demand for live entertainment. Additionally, new sales and renewal activity in the company’s hospitality business remains robust. MSGE recently announced multi-year sponsorship deals with Lenovo, its subsidiary Motorola Mobility, the Department of Culture and Tourism-Abu Dhabi, as well as a multi-year extension of its sponsorship deal with Verizon. In our view, MSGE’s portfolio generates stable cash flow that should enable further deleveraging. At current levels, the company is trading at a significant discount to our estimate of private market value.”
3. Six Flags Entertainment Corporation (NYSE:FUN)
Number of Hedge Fund Holders: 47
Six Flags Entertainment Corporation (NYSE:FUN) is a regional amusement resort operator with a number of amusement parks, resort properties, and water parks across 17 US states, Mexico, and Canada. Its parks offer a range of leisure experiences, including themed rides, coasters, resorts, and intellectual property such as Looney Tunes, DC Comics, and PEANUTS.
In July 2024, Six Flags completed an $8 billion merger with rival Cedar Fair to produce the largest amusement park operator in the US and form the Six Flags Entertainment Corporation (NYSE:FUN).
In fiscal Q4 2024, the company generated net revenues of $687 million on attendance of 10.7 million visits. These results included $324 million in net revenues and attendance of 5 million visits from legacy Six Flags operations. Six Flags Entertainment Corporation (NYSE:FUN) saw an in-park per capita spending of $61.60, representing an increase of 3% compared to the in-park per capita reported by legacy Cedar Fair in fiscal Q4 2023.
Management said that around 80% of the increase is associated with the impact of operations at the legacy Six Flags parks, with the balance attributable to higher in-park guest spending on food and beverage, extra charge products, and merchandise at the legacy Cedar Fair parks. These trends were reflected in a 3% increase in the average transactions per guest during fiscal Q4 2024.
2. Amer Sports, Inc. (NYSE:AS)
Number of Hedge Fund Holders: 48
Amer Sports, Inc. (NYSE:AS) is a Finland-based global group of outdoor brands and sports, including Arcteryx, Salomon, Wilson, Peak Performance, Atomic, Armada, ATEC, DeMarini, EvoShield and ENVE. It offers fitness and sports equipment through factory outlets, fitness clubs, specialty retailers, mass merchants, and more.
The company’s sales, adjusted margins, and EPS surpassed analyst expectations in fiscal Q4 2024. It generated 23% sales growth and more than 300 basis points of adjusted operating margin expansion in the quarter. This growth was attributed to strong growth and profitability in the technical apparel and outdoor performance segment. Amer Sports, Inc. (NYSE:AS) also reported an 18% revenue growth to $5.2 billion and 130 basis points of adjusted operating margin expansion to 11.1%, setting new records.
All three of the company’s big brands, including Arc’teryx, Salomon, and Wilson, reported accelerating momentum in fiscal Q4 2024. Great China and APAC regions also continued to deliver solid growth, while EMEA and North America showed an acceleration in momentum. Amer Sports, Inc. (NYSE:AS) ranks second on our list of the 12 best leisure stocks to buy right now.
1. Peloton Interactive, Inc. (NASDAQ:PTON)
Number of Hedge Fund Holders: 49
Peloton Interactive, Inc. (NASDAQ:PTON) is a global fitness company operating an interactive fitness platform with a community of more than six million members. It offers technology-fitted and instructor-led boutique classes to members. The company operates in two segments: Connected Fitness Products and Subscription. The Connected Fitness Products segment encompasses Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide and Peloton Row. The subscription segment offers access to the company’s library of fitness classes.
Over 2 million members completed strength training, pilates, boot training, or yoga workouts through Peloton Interactive, Inc. (NASDAQ:PTON) in fiscal Q2 2025. Strength drove 735 million minutes of workout time in the quarter, reflecting the company’s continued popularity. It is also elevating its cardio business through efficient marketing efforts that have allowed the company to exceed its Tread portfolio sales goals and achieve higher new subscription rates on Tread and Tread+ sales year-over-year in fiscal Q2 2025.
In December, Peloton Interactive, Inc. (NASDAQ:PTON) launched Strength+, an innovative app that offers non-class strength training programs with audio guidance from expert coaches, along with a custom workout generator. In fiscal Q2 2025, the app reached over 220,000 monthly active users, and is anticipated to continue growing.
Overall, PTON ranks first among the 12 best leisure stocks to buy right now. While we acknowledge the potential of leisure stocks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PTON but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
