3 Recreation Stocks to Buy for Hot Summertime Returns

After shaking off a long winter, these rec stocks are ready to play

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3 Recreation Stocks to Buy for Hot Summertime Returns

After being cooped up indoors for months due to an unusually long, hard winter in the U.S., consumers are itching to go outside and play — and that trend bodes well for the right recreation stocks.

Harley davidson hog stock 630 300x205 3 Recreation Stocks to Buy for Hot Summertime Returns
Source: ©iStock.com/kohlhoff

As consumer cyclicals, recreation stocks are extremely sensitive to economic shifts because they rely on discretionary spending, unlike non-cyclicals such as food and utilities that people must buy regardless of the state of the economy.

The good news for recreation stocks: consumers are splurging again. A Gallup poll released last week revealed consumers spent an average of $98 a day last month — $10 higher than the April average. The May spending results, which exclude auto and home purchases — as well as monthly bills — were driven higher by a Memorial Day weekend spending spree. Daily consumer spending averaged $134 per day for May 27-29, the highest level since 2008.

The Gallup data reveals the brighter side of the odd impact the bad winter had on consumer spending. The Commerce Department reported a slight decline in consumer spending in April, but it turns out that the 0.1% decline was due to lower heating bills.

So why does this matter to investors? U.S. consumers are opening up their wallets and flashing the plastic again — and after a brutal winter cooped up indoors, they’re more than ready for fun in the sun.

Playing into those trends, here are 3 recreation stocks poised to deliver hot returns this summer:

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Article printed from InvestorPlace Media, http://investorplace.com/2014/06/recreation-stocks-hog-wgo-tho/.

©2014 InvestorPlace Media, LLC

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