• tlivingstonblog

Outdoor "Plays"

Yesterday, I met with some friends at Gantry Plaza State Park in Long Island City, New York. It was the first time since late 2019 where we could all safely meet together. As you can probably relate to, we were so happy to get outdoors again after dealing with the COVID-19 lockdowns we have all had to experience since March 2020. It is a human need to be outdoors and to connect with friends and family in nature. As demand for these types of experiences increases this summer, let's take a look at some stocks that benefit from elevated desire for outdoor leisure activities.


Vista Outdoor

Vista Outdoor, $VSTO, has been on my watchlist for quite some time. The chart just screams accumulation with heavy volume coming in over many weeks starting in late 2020 and continuing well into this year. This is a stock I think offers large potential in 2021as the need for outdoor sporting equipment remains in high demand. With a strong return on equity, triple-digit earnings, and accelerating sales, Vista clearly is "sporting" something fun. I bought VSTO in May and I'm willing to hold it through some normal reactions in order to capture a larger potential uptrend.



YETI

Yeti, $YETI, is another stock that fits well with the "outdoor" theme. A seller of coolers, drinkware, waterproof gear, and other outdoor products, this is a company that has the products people need who are looking to reconnect with nature. Like Vista, YETI has produced triple-digit earnings growth and a healthy increase in sales over its' latest reported quarter. From a technical standpoint, it looks like it is forming a base on base pattern with very tight action on the right side, something I always like to see.



Other stocks to watch in the outdoor space include Land's End (LE) and Callaway Golf (ELY). Land's End was up over 35% this week after posting strong earnings on June 2. This is supports my thesis that the outdoor space is a group to watch. Callaway is a major producer of golf products and definitely a stock to watch for those who are undoubtedly more knowledgeable on the sport than I am. While LE and ELY do offer potential, my main focus is on VSTO and YETI. Time will tell if this is a summer where the "outdoors" is the place to be, both in leisure time and for trading.


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Full Disclosure: I currently own VSTO.


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