Buy 3 Outdoor Industry Stocks to Gain From Robust Short-Term Potential

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Buy 3 Outdoor Industry Stocks to Gain From Robust Short-Term Potential

The outdoor industry benefits from steady demand across various age groups and regions driven by shifting consumer values toward health, sustainability, and experience-driven living. Many companies in this space leverage brand loyalty, product innovation, and direct-to-consumer strategies to drive recurring sales and maintain premium positioning.

Here, we recommend three outdoor industry stocks with a favorable Zacks Rank to strengthen your portfolio. These stocks have double-digit upside price potential in the near-term. The stocks are: Deckers Outdoor Corp. DECK, Trex Co. Inc. TREX and Brunswick Corp. BC. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our three picks year to date.

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Deckers Outdoor Corp.

Deckers Outdoor continues to strengthen its long-term growth outlook through HOKA's expanding product portfolio, UGG's year-round diversification, accelerating direct-to-consumer momentum and growing international demand. 

Disciplined inventory management, premium full-price selling, a debt-free balance sheet and continued share repurchase further reinforce DECK’s financial strength and shareholder return profile. DECK reaffirmed its multi-year growth framework, raised fiscal 2027 earnings per share guidance and expects operating expense leverage to begin in fiscal 2028 as current investments mature.

Deckers Outdoor has an expected revenue and earnings growth rate of 7.9% and 6.8%, respectively, for the current year (ending March 2027). The Zacks Consensus Estimate for the current year’s earnings has improved 0.7% over the last 60 days.

Solid Short-Term Price Upside Potential

The short-term average price target of brokerage firms represents an increase of 45.6% from the last closing price of $81.66. The brokerage target price is currently in the range of $70-$184. This indicates a maximum upside of 125.3% and a downside of 14.3%.

Trex Co. Inc.

Trex is a manufacturer of wood-alternative decking and railing in the United States. TREX sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe's stores.

TREX has an expected revenue and earnings growth rate of 5.6% and 15.2%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 4.8% over the last 60 days.

Solid Short-Term Price Upside Potential

The short-term average price target of brokerage firms represents an increase of 20.8% from the last closing price of $44.86. The brokerage target price is currently in the range of $42-$61. This indicates a maximum upside of 36% and a downside of 6.4%.

Brunswick Corp.

Brunswick designs, manufactures, and markets recreation products in the United States, Europe, the Asia-Pacific, Canada, and internationally. BC operates through four segments: Propulsion, Engine P&A, Navico Group, and Boat. The company endeavors to instill Genuine Ingenuity in all its leading consumer brands. 

BC has an expected revenue and earnings growth rate of 7.6% and 39.1%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.5% over the last 60 days.

Solid Short-Term Price Upside Potential

The short-term average price target of brokerage firms represents an increase of 41% from the last closing price of $64.98. The brokerage target price is currently in the range of $76-$120. This indicates a maximum upside of 84.6% and no downside.

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Deckers Outdoor Corporation (DECK): Free Stock Analysis Report
 
Brunswick Corporation (BC): Free Stock Analysis Report
 
Trex Company, Inc. (TREX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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