Recreational vehicle and pickup truck at a campsite highlight rising outdoor stock demand into 2026. Key Points Outdoor recreation is an industry that has shown strong growth since the COVID-19 vaccines became available in 2021.  Companies in this sector typically cater to high-net-worth clients, which is a bonus in the current economic environment. Winnebago, Yeti, and Acushnet each have both technical and fundamental tailwinds entering 2026. Interested in Acushnet? Here are five stocks we like bette ...

Core Insights - Winnebago Industries, Inc. reported a significant earnings per share (EPS) of $0.38, exceeding the estimated $0.13, marking a substantial improvement from the previous year's EPS of -$0.03, indicating strong financial performance [2][6] - The company's revenue for the quarter ending November 2025 reached approximately $702.7 million, surpassing the estimated $629.9 million, representing a 12.3% increase compared to the same period last year [3][6] - Winnebago's success is attributed to improving demand trends, stronger margins, and disciplined execution across its core segments, with notable increases in towable RV sales and motorhome RV sales [4] Financial Metrics - Winnebago has a price-to-earnings (P/E) ratio of approximately 33.83 and a price-to-sales ratio of about 0.43, reflecting its strong market position [5][6] - The company maintains a low debt-to-equity ratio of approximately 0.018 and a current ratio of about 2.69, demonstrating conservative use of debt and a strong ability to cover short-term liabilities [5][6] Revenue Breakdown - Towable RV sales increased by 15.5% to $293.4 million, while motorhome RV sales rose by 13.5% to $308.5 million, contributing significantly to overall revenue growth [4] - Marine sales experienced a modest increase of 2.2% to $92.5 million, further supporting the company's revenue performance [4]

Core Viewpoint - Brunswick Corporation is well-positioned for a recovery in the marine market, with expectations for increased consumer spending on leisure items by 2026 [2]. Financial Performance - In Q3 2025, Brunswick reported revenue of $1.36 billion, reflecting a 6.8% increase year-over-year [3]. - The company's free cash flow reached $111 million in Q3, totaling $355 million year-to-date, which facilitated $70 million in share repurchases and an increased debt reduction target of $200 million [4]. Market Position - Brunswick is the largest producer of recreational marine products, indicating a strong market presence [2]. - The marine market is characterized as highly cyclical, suggesting that current conditions may present a strategic entry point for investors [2]. Segment Performance - Boat retail sales remained flat year-over-year, showing improvement compared to the first half of the year, while Freedom Boat Club contributed approximately 13% to segment sales [3].

Core Viewpoint - Brunswick reported a strong third quarter with nearly 8% sales growth across all business units, indicating a stable consumer demand in the boating industry [1][3][4]. Sales Performance - The third quarter sales showed a significant recovery from the second quarter, which was affected by tariff announcements and market fluctuations [3]. - All four reporting segments of Brunswick exceeded guidance and consensus for both top and bottom lines, reflecting a solid quarter and positive consumer trends [4]. Consumer Behavior - The demand for premium boats remains robust, while value boat purchases have also stabilized, suggesting a strengthening consumer base [3][4]. - Gas prices have historically been low, and only when prices exceed $5 per gallon does it impact boating behavior, primarily leading to reduced usage rather than abandonment of boating [8]. Tariff Impact - Brunswick's tariff exposure is estimated to be around $75 million, primarily due to tariffs on components imported from China, despite only 5% of their supply base being from China [5][6]. - The company is actively working to reduce its reliance on imported components by increasing domestic sourcing and vertical integration [6][10]. Competitive Position - As a predominantly domestic manufacturer with production facilities in 21 states, Brunswick is well-positioned to handle a long-term environment of persistent tariffs, especially compared to competitors facing higher import tariffs [10][11].

Boat Show Overview - The Fort Lauderdale International Boat Show will showcase over 1,300 diverse boats [1] Event Details - The boat show is scheduled for next week [1]

Core Insights - Winnebago Industries Inc.'s stock experienced its largest one-day gain in over 40 years, attributed to the company's success in attracting younger buyers for its recreational vehicles and boats [1][2]. Company Overview - Historically, Winnebago has been popular among retirees and older individuals who can afford RVs, which can cost hundreds of thousands of dollars [2]. - The company is now witnessing a broader demographic of buyers, indicating a shift in its customer base [2].

Core Viewpoint - Polaris is restructuring by separating its Indian Motorcycle business into a stand-alone company, which has positively impacted its stock price, increasing shares by 10.4% [1][3]. Group 1: Business Strategy - The separation of the Indian Motorcycle business aims to enhance Polaris' earnings profile and focus on growth areas within its portfolio [3][4]. - Polaris plans to sell a majority stake in Indian Motorcycle to private equity firm Carolwood, which is expected to unlock greater long-term value for both Polaris and its shareholders [3][4]. Group 2: Financial Impact - The deal is projected to increase adjusted earnings per share by approximately $1 and annualized adjusted EBITDA by $50 million upon closing [4][7]. - Indian Motorcycle sales accounted for about 7% of Polaris' revenue over the trailing 12-month period ending June 30 [3][7].

Core Viewpoint - Brunswick (BC) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Company Performance - Brunswick has a solid track record of surpassing earnings estimates, with an average surprise of 77.17% over the last two quarters [2]. - In the last reported quarter, Brunswick achieved earnings of $1.16 per share, exceeding the Zacks Consensus Estimate of $0.89 per share by 30.34%. In the previous quarter, the company reported earnings of $0.56 per share against an expectation of $0.25 per share, resulting in a surprise of 124.00% [3]. Earnings Estimates - Recent favorable changes in earnings estimates for Brunswick indicate a positive outlook, with a Zacks Earnings ESP of +2.33%, suggesting analysts are optimistic about the company's earnings prospects [6][9]. - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) enhances the likelihood of another earnings beat [9]. Predictive Metrics - Research indicates that stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [7]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions, which may provide a more accurate prediction of earnings [8].

Business Performance - The company is not seeing a comeback in the industry yet, but also not seeing a tailing off [1] - Cash buyers are strong, contributing to good performance in the marketplace for these types of boats [2] - The company introduced 11 new boats this year, driving innovation and attracting customers [3] - Value boats saw a slight drop-off in sales, but this was offset by increased sales of upper-end boats, with sales reaching up to 45-foot boats priced at $2 million [6] Tariffs Impact - Tariffs have a limited impact on the company, affecting sub-tiers and suppliers by approximately 150 to 300 basis points, equivalent to a 15% to 3% price increase [4] - The company is working to offset the price increase caused by tariffs [4] Market Trends and Future Strategy - The company aims to cater to consumer demand by developing bigger, longer, and more feature-rich boats [8] - The company emphasizes responsible boating, providing technology to control wave size and working with the WSIA to promote responsible boat usage on lakes [10][11] - The company wants to see more consumer confidence through economic policy [13]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investing can be risky as stocks may lose momentum when their valuations exceed future growth potential [1] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, identified through the Zacks Momentum Style Score [2] Group 2: Brunswick (BC) Stock Analysis - Brunswick (BC) has shown a price increase of 0.9% over the past four weeks, indicating growing investor interest [3] - Over the past 12 weeks, BC's stock gained 10.3%, demonstrating its ability to deliver positive returns over a longer timeframe [4] - BC has a beta of 1.36, suggesting it moves 36% higher than the market in either direction, indicating fast-paced momentum [4] - BC has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [5] - The stock has a Zacks Rank 2 (Buy) due to upward trends in earnings estimate revisions, which attract more investors [6] - BC is trading at a Price-to-Sales ratio of 0.82, indicating it is reasonably valued at 82 cents for each dollar of sales [6] Group 3: Additional Investment Opportunities - Besides BC, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [7] - Zacks offers over 45 Premium Screens tailored to different investing styles, aiding in stock selection [8]