Unlike many companies that went through a pandemic boom, Academy Sports and Outdoors has enjoyed a soft landing post-pandemic. Earnings this year are expected to be down 10% off the 2022 peak, and next year, earnings should reach the level of $7.70.

The Zacks Leisure and Recreation Products industry comprises companies that provide amusement and recreational products, swimming pools, marine products, golf courses, boat repair and maintenance services and other ancillary services.

As we continue transitioning into the fall season, 2023 has left egg on the face of many forecasters. The seemingly inevitable recession on the heels of a turbulent 2022 hasn’t materialized. I like Academy Sports and Outdoors in this environment.

We’re always looking for the next great growth story, but given the tricky market environment, a bit of stability doesn’t hurt. Academy Sports & Outdoors fills that bill, with a business that’s far from revolutionary but has proved to be resilient.

High inflation continues to hurt most industries, and leisure and recreational products are no exception. Yet, industry participants that design, market, and distribute products for the outdoor and recreation market are witnessing robust demand.