So far, 2025 has been pretty good for the travel and leisure industry. The days of revenge travel seem to have staying power, with travelers planning to spend more and take longer trips.
Travelers in 2025 are expected to spend 9% more, and the global travel and tourism industry is projected to generate $955.9 billion in 2025 and grow at an annual rate of 3.9%. In addition, the global gambling market is expected to reach $618.69 billion in 2025 and grow 8.1%.
It’s tough to find the right stocks in these industries. No one can guarantee the companies that are truly poised to capitalize on these megatrends and deliver consistent returns. However, looking at the ones that have delivered the most gains so far this year is a good starting point.
An international traveler consulting the company’s app on their smartphone, illustrating their successful online marketplace.
Methodology
For this article, I screened the top-performing travel and leisure stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
15. Light & Wonder Inc (NASDAQ:LNW)
Number of Hedge Fund Holders In Q3 2024: 30
Light & Wonder Inc (NASDAQ:LNW) makes gaming content for casinos and also has segments for digital gaming.
The stock has delivered solid gains so far as analysts have been upping their price targets in the months after its Q3 2024 report. It saw a 12% year-over-year increase in Q3 2024 revenue and Q4 results are scheduled to be released on February 25, 2025.
Also, Light & Wonder surged further in February after an Australian legal win. This win erased concerns about the company having troubles with previously sold games in Australia. Moreover, it secured a $1 billion revolving credit to increase liquidity.
The consensus price target of $108.5 implies 11.09% upside.
LNW stock is up 13.07% year-to-date.
14. Royal Caribbean Group (NYSE:RCL)
Number of Hedge Fund Holders In Q3 2024: 52
Royal Caribbean Group (NYSE:RCL) is a vacation company with a fleet of 66 ships across its five brands.
The stock has surged after it performed better than analysts expected in 2024. It also expects solid results this year. Royal Caribbean Group reported an EPS of $10.94 and adjusted EPS of $11.8. The company’s strong demand led to an expected adjusted earnings growth of 23% in 2025, with adjusted EPS projected to be in the range of $14.35 to $14.65.
Moreover, the company is expanding its vacation offerings with the launch of Celebrity River Cruises and new ships. It is set to begin taking bookings this year on its new river cruises, which are scheduled to start on 10 new ships in 2027. In 2025, capacity is expected to increase by 5% with the introduction of Star of the Seas and Celebrity Xcel.
The consensus price target of $284.12 implies 8.8% upside.
RCL stock is up 13.2% year-to-date.
13. Gambling.com Group Ltd (NASDAQ:GAMB)
Number of Hedge Fund Holders In Q3 2024: 11
Gambling.com Group Ltd (NASDAQ:GAMB) has a pretty self-explanatory name, though there are some nuances. It is an online gambling marketing company. It also has websites for reviewing gambling services.
The stock has delivered solid returns so far in 2025 after it acquired Odds Holdings, Inc. It is the parent company of OddsJam. The acquired company projects revenue of $26 million and adjusted EBITDA of $12 million for 2024, with expected EBITDA growth of over 20% in 2025.
In addition, Gambling.com updated its 2024 full-year revenue and adjusted EBITDA guidance, expecting revenue of $125 million to $127 million and adjusted EBITDA of $46.5 million to $48.5 million. The midpoints of these ranges imply year-over-year growth of 16% and 29%, respectively.
The consensus price target of $16.63 implies 4% upside.
GAMB stock is up 13.53% year-to-date.
12. Inspired Entertainment Inc (NASDAQ:INSE)
Number of Hedge Fund Holders In Q3 2024: 16
Inspired Entertainment Inc (NASDAQ:INSE) is a B2B provider of gaming products for the gambling industry.
The stock is up markedly so far this year, especially after it announced a five-year contract extension with Moto Hospitality, the UK’s largest motorway service operator. It has also partnered up with some big gambling companies in the past few months.
Furthermore, Inspired Entertainment reported solid Q3 2024 financial results, with revenue of $78 million and a net income of $3.4 million. The Interactive segment experienced significant revenue growth.
The consensus price target of $15 implies 45.35% upside.
INSE stock is up 14.03% year-to-date.
11. DraftKings Inc (NASDAQ:DKNG)
Number of Hedge Fund Holders In Q3 2024: 54
DraftKings Inc (NASDAQ:DKNG) is a digital gambling and sports betting company.
The stock has returned solid gains so far in 2025 as analysts are expecting solid Q4 and full-year 2024 results on February 13, 2025. Analysts are very bullish, with Cathie Wood having DKNG as one of her top picks.
Analysts forecast DraftKings to rebound in 2025, citing sustained user and engagement growth. The headwinds this company faced in 2024 are not expected to persist this year. DraftKings’ management projects 2025 revenue between $6.2 billion and $6.6 billion. This implies 27–35% year-over-year growth. Plus, adjusted EBITDA is expected to be $900 million to $1 billion
The consensus price target of $50.92 implies 18.87% upside.
DKNG stock is up 15.16% year-to-date.
10. Jakks Pacific Inc (NASDAQ:JAKK)
Number of Hedge Fund Holders In Q3 2024: 12
Jakks Pacific Inc (NASDAQ:JAKK) makes toys and sporting goods.
The stock is up notably so far in 2025 as it has introduced new toy lines tied to high-demand entertainment releases. It has also expanded its shelf space with new toy check lanes at Target and partnerships with Amazon, Macy’s, and Sainsbury’s.
Analysts are quite optimistic about the company’s Q4 2024 earnings release scheduled for February 20, 2025.
The consensus price target of $41.67 implies 27.69% upside.
JAKK stock is up 15.91% year-to-date.
9. Viking Holdings Ltd (NYSE:VIK)
Number of Hedge Fund Holders In Q3 2024: 49
Viking Holdings Ltd (NYSE:VIK) is a travel company that has river and ocean cruises across all seven continents with a fleet of nearly 100 small ships.
The stock has delivered notable gains so far in 2025 as it received several top rankings in U.S. News & World Report’s 2025 Best Cruise Line awards. It has also been rated #1 for Rivers, Oceans, and Expeditions by Condé Nast Traveler. Viking is the only travel company to simultaneously receive top honors from both Condé Nast Traveler and Travel + Leisure for two consecutive years.
Plus, analysts expect a good 2025 as it has strong advanced bookings for its core products, with 95% of capacity passenger cruise days sold for the 2024 season and 70% sold for the 2025 season. 2025 bookings are at $4,329 million, 26% higher than 2024 at the same point.
The consensus price target of $45.13 implies 12.79% downside.
VIK stock is up 17.41% year-to-date.
8. Lucky Strike Entertainment Corp (NYSE:LUCK)
Number of Hedge Fund Holders In Q3 2024: 13
Lucky Strike Entertainment Corp (NYSE:LUCK) is an entertainment company with venues that have water parks and other amusements.
The stock is up almost 20% so far this year as Bowlero Corp rebranded to Lucky Strike Entertainment and changed its stock ticker symbol to NYSE:LUCK. It also expanded its portfolio by opening new locations. In Q2 FY2025, the company opened four new locations and acquired Boomer’s.
Its Q2 FY2025 results showed a net income of $28.3 million. This was much better than the previous year’s loss of $63.5 million. Moreover, it has reiterated its financial guidance for FY2025 and expects total revenue to increase by mid-single digits to over 10%.
The consensus price target of $12 implies 0.08% downside.
LUCK stock is up 19.98% year-to-date.
7. Mattel Inc (NASDAQ:MAT)
Number of Hedge Fund Holders In Q3 2024: 25
Mattel Inc (NASDAQ:MAT) makes toys and consumer products for infants and preschoolers.
The stock has surged so far this year after it released its Q4 and full-year report which beat analyst expectations. Its 2025 forecast also includes net sales growth of 2% to 3% in constant currency and adjusted EPS of $1.66 to $1.72. This is a growth of about 2% to 6%.
Its Q4 revenue increased by 2% and adjusted EPS of $0.35 beat analyst estimates. Mattel is also ahead of schedule in achieving its $200 million cost-savings target by the end of 2026. That said, net sales declined 1% as reported, and 0.5% in constant currency for the full year.
It plans $600 million in share repurchases in 2025.
The consensus price target of $25.57 implies 20.05% upside.
MAT stock is up 20.14% year-to-date.
6. Tripadvisor Inc (NASDAQ:TRIP)
Number of Hedge Fund Holders In Q3 2024: 34
Tripadvisor Inc (NASDAQ:TRIP) is an online travel company.
The stock has delivered stellar gains so far this year as there are rumors of an acquisition. An SEC filing showed a non-binding offer from an undisclosed bidder named “Party 7” that is proposing to acquire its shares at $18 to $19 per share. The company’s special committee thinks it is inadequate, but the possibility alone has investors excited.
In addition, Tripadvisor has its own acquisitions going. Tripadvisor announced a merger agreement to acquire Liberty TripAdvisor in a transaction valued at approximately $435 million. This deal involves converting Liberty TripAdvisor’s shares into cash payments and Tripadvisor common stock. Upon completion, Tripadvisor plans to retire approximately 27 million shares currently held by Liberty TripAdvisor.
Tripadvisor is expected to release its next earnings report on February 20, 2025.
The consensus price target of $17.5 implies 4.94% downside.
TRIP stock is up 24.64% year-to-date.
5. Xponential Fitness Inc (NYSE:XPOF)
Number of Hedge Fund Holders In Q3 2024: 22
Xponential Fitness Inc (NYSE:XPOF) is a franchisor of boutique health and wellness brands.
The stock is up so much so far this year because it has made many executive leadership appointments early in the year. Xponential Fitness announced the appointment of John Kawaja as President of North America, Tim Weiderhoft as Chief Operating Officer of North America, Kevin Beygi as Chief Technology Officer, and Eric Simon as Chief Development Officer.
Moreover, analysts seem optimistic as six of Xponential Fitness’ brands earned spots on Entrepreneur’s 2025 Franchise 500 list. It has also reported system-wide sales of $431.2 million in Q3 2024, which is up 21% year-over-year.
The consensus price target of $17.6 implies 1.13% upside.
XPOF stock is up 29.07% year-to-date.
4. Full House Resorts Inc (NASDAQ:FLL)
Number of Hedge Fund Holders In Q3 2024: 9
Full House Resorts Inc (NASDAQ:FLL) manages casinos and other entertainment facilities.
The stock has seen solid momentum so far in 2025 as it has reported progress on some of its high-impact development projects. The Chamonix Casino Hotel in Colorado has opened.
Plus, a temporary Casino in Illinois called American Place had permitting delays for the permanent $500 million resort resolved in late 2024 after an Illinois Supreme Court ruling.
The recent rise could also be due to a short squeeze as short interest surged early in the year and the rally forced bears to cover.
The consensus price target of $7 implies 32.58% upside.
FLL stock is up 29.41% year-to-date.
3. Super Group (SGHC) Ltd (NYSE:SGHC)
Number of Hedge Fund Holders In Q3 2024: 10
Super Group (SGHC) Ltd (NYSE:SGHC) is an online sports betting and gaming company.
The stock has risen significantly so far in 2025 as it raised its 2024 revenue guidance from 1.6 billion euros to 1.66 billion euros. It raised its ex-US adjusted EBITDA from 360 million euros to 387-392 million euros.
Analysts seem bullish and are upping their price targets. It also issued a press release that announced its preliminary financial results for Q4. The company is expected to report its financial results for the full year and Q4 on February 25, 2025.
The consensus price target of $10 implies 21.29% upside.
SGHC stock is up 32.42% year-to-date.
2. PLBY Group Inc (NASDAQ:PLBY)
Number of Hedge Fund Holders In Q3 2024: 1
PLBY Group Inc (NASDAQ:PLBY) is a pleasure and leisure company.
The stock is up significantly so far this year after it closed a strategic partnership with Byborg Enterprises. It announced a long-term licensing agreement with Byborg Enterprises, which includes a substantial investment of $22.35 million. This partnership is expected to generate guaranteed minimum payments of $300 million over 15 years.
Moreover, it decided to retain its Honey Birdette business as part of its growth strategy.
The company now projects $120 million in full-year 2025 revenue and expects to become cash flow positive within the same timeframe. It also aims to reduce its net senior debt below $100 million by the end of the year.
The consensus price target of $2.57 implies 27.06% upside.
PLBY stock is up 38.36% year-to-date.
1. Life Time Group Holdings (NYSE:LTH)
Number of Hedge Fund Holders In Q3 2024: 27
Life Time Group Holdings (NYSE:LTH) is a health and fitness company that operates athletic country clubs.
The stock has delivered stellar gains so far in 2025 after it announced preliminary Q4 and full-year results for 2024. The company posted $661 million to $663 million in expected Q4 revenue, up by about 18.5%. Full-year revenue is expected to grow by a similar amount.
Its net income is expected to rise 35% to $31 million to $33 million in Q4, and by 98.4% to $151 million at midpoint for the full year.
Also, Life Time Group’s 2025 guidance projects revenue growth of 12.2%, along with net income growth of 75.8%. As such, the sentiment here has been quite bullish.
The consensus price target of $31.77 implies 1.91% upside.
LTH stock is up 40.91% year-to-date.
While we acknowledge the potential of LTH as an investment, our conviction lies in the belief that some 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 LTH but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
