Investing in Leisure Stocks

People want to enjoy themselves in their free time, and leisure stocks are a smart investment to capitalize on that. The world's population is getting wealthier overall, which means there's more money to spend on entertainment.

Leisure and recreation is a broad category with a diverse range of companies. Whether your idea of a good time is going to a theme park, skiing, or streaming your favorite shows, there are a lot of public companies generating profits from different leisure options.

Five leisure stocks

Five leisure stocks to buy in 2024

Here are some of the top leisure stocks poised for growth:

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1. Walt Disney

Walt Disney (DIS 0.88%) can amuse you whether you head to one of its resorts or just sit on your couch. It's perhaps best known for its vacation destinations, with theme parks and hotels on three continents, plus its own cruise line. The company also has television, movie, streaming, and merchandising operations.

Diversification helps the company handle difficult periods, with the COVID-19 pandemic being a notable example. Even when its theme parks were closed, Disney was still able to generate massive amounts of revenue. Its portfolio of streaming services has been a huge success.

Disney+ is the crown jewel, and it currently sits at more than 150 million paid subscribers. Disney also owns Hulu and ESPN+. Worldwide, its streaming services have more than 220 million subscribers.

2. Marriott International

Marriott International (MAR 1.26%) is among the world's largest hotel companies, and its portfolio has more than 8,000 properties in more than 140 countries. Popular Marriott brands include:

• The Ritz-Carlton.
• JW Marriott.
• Sheraton.
• Residence Inn.
• Courtyard.
• MGM Collection.

Marriott doesn't take on the expense and complexity of owning most of its properties. Instead, it operates an asset-light business that generates fees from brand licensing and property management. Marriott's massive loyalty program, with more than 200 million members, keeps visitors coming back.

High travel demand has been good for Marriott, which has seen its occupancy and revenue numbers rise in 2023 and 2024. With its reach and scale, Marriott International is an excellent choice for long-term value.

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3. Funko

Funko (FNKO -0.17%) is most famous for its distinctive Funko Pop! collectibles. It also makes action figures, plushies, games, and apparel, so it has built a strong selection on top of its flagship product.

The key to Funko's appeal is its massive variety of collectibles. Because of its licensing partnerships, it can offer figurines using many of the most famous characters and figures in pop culture. Funko product lines include:

• Marvel.
• DC Comics.
• Star Wars.
• Harry Potter.
• Pokemon.
• Athletes.
• Music icons.

Net sales for Funko were down by 12.6% in 2023. While its performance has been up and down in recent years, it has established a recognizable brand. It has also been diversifying in recent years, including with its 2017 acquisition of the U.K.-based Loungefly apparel and accessories business and its 2022 acquisition of pop culture company Mondo.

4. Hilton Worldwide

Hilton Worldwide (HLT 0.96%) is another big name in the hospitality industry. It has a portfolio of 24 popular brands, ranging from budget-friendly Hampton by Hilton Hotels to luxurious Waldorf Astoria Hotels & Resorts.

This hotel company had an excellent 2023, where it brought Hilton's development pipeline to a record 462,400 rooms and announced an exclusive partnership with Small Luxury Hotels of the World (SLH). It was also named the No. 1 World's Best Workplace by Great Place to Work.

Like Marriott, Hilton keeps guests coming back with an impressive loyalty program. Hilton Honors has more than 200 million members and counting.

5. Vail Resorts

Vail Resorts (MTN 0.81%) is the biggest name in North American skiing. It owns and operates 40 ski resorts in three countries, with some of its premier destinations, including:

• Whistler Blackcomb, the largest ski resort in North America.
• Vail Ski Resort.
• Park City Mountain Resort.
• Breckenridge Ski Resort.

The company's large portfolio helps it stand out from smaller ski resort operators. It also has enabled Vail to build a strong loyalty program since skiing enthusiasts get special deals at a large number of locations.

Like many companies in the consumer discretionary sector, Vail was severely affected by the pandemic. It has also been struggling recently, with net income falling from $268.1 million for the 2023 fiscal year to $230.4 million in 2024. While Vail is going through tough times, its portfolio of properties could help it bounce back, so it's worth checking out while share prices are lower than usual.

ETFs

Leisure-focused ETFs

You can also gain portfolio exposure to leisure companies by investing in leisure-focused exchange-traded funds (ETFs), which hold baskets of leisure stocks. ETFs are ideal for investors who would rather not choose among the stocks of individual companies.

The largest leisure and recreation-focused ETF is Invesco Dynamic Leisure and Entertainment (PEJ 1.68%). Its holdings are a diverse mix that includes entertainment companies, casinos, restaurants, and hotels.

Related investing topics

Should you invest?

Should you buy leisure industry stocks?

Travel and leisure stocks faced challenges because of the COVID-19 pandemic, but many weathered the storm and are now thriving. If you're seeking value stocks, these are exciting times to buy into top performers from the leisure sector.

On a longer-term basis, U.S. recreation spending is projected to grow 9.9% annually through 2026. That's welcome news for the best leisure companies and their investors.

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