A thriving economy means more disposable income. More disposable income means stocks that provide a great entertainment or recreation experience should do well.
Lindblad Expeditions Holdings, Inc. (NASDAQ: LIND) provides expedition and adventure cruises all over the world. These aren’t your eat, drink and repeat cruises either.
By providing adventurous “expeditions” Lindblad is growing sales at a 25% clip in its latest quarter. And, the company was able to increase earnings by over 105%. The stock has been rewarding investors, up almost 35.34% so far in 2018. If Lindblad can continue to expand sales with its new ships and offerings, the company should be in for corresponding continued stock growth.
If you have disposable income, what better purchase than a boat? Malibu Boats, Inc. (NASDAQ: MBUU) has benefitted from a recovering economy, growing sales 84.7% year-over-year.
The recreational ski boat builder is in the sweet spot for both low end first boat purchasers as well as those wishing to spend a little more money on a tricked out new “toy”. The company’s stock has rewarded investors in 2018 to the tune of over 81% returns. But, even after that run the company has a price-to-earnings ratio (P/E) of only 15.25. Malibu’s market position, combined with it’s strong sales and low multiple, makes it a bargain even after this year’s run.
Following in the wake of Malibu is another classic boating company that is also ratcheting up the sales numbers. Mastercraft and NauticStar parent company, MCBC Holdings, Inc. (NASDAQ: MCFT), has introduced several new boats recently and is growing sales 63.6% year-over-year.
Like Malibu, Mastercraft also carries a relatively low P/E multiple of only 18.15. Recent earnings catapulted the stock to its highs of the year, up almost 33.12% in 2018. Investors may want to wait for a pullback from the earnings euphoria to initiate a position.
Both Malibu and Mastercraft are perfectly positioned to take advantage of a better performing economy. With additional tax cuts potentially on the horizon, what better way to spend that refund check than on a brand new boat.
And when you come in off the water, how about relaxing at your hotel and maybe catching a movie. The Marcus Corporation (NYSE: MCS) has you covered. Operating both hotel properties and movie theaters, Marcus has grown sales over 20% year-over-year. In the second quarter Marcus reported record revenue, operating income and earnings.
Those record numbers have led to a 42.27% return for the stock in 2018. With consolidation in the hotel industry continuing at a steady clip, it would not be surprising if Marcus, one of the only small-cap stocks in the sector, were on the radar of a large player.
Whether you like to spend your vacation cruising with Lindblad, skiing and boating with Malibu Boats and MCBC Holdings, or lounging by the hotel pool and taking in a movie with Marcus, each of these stocks is growing sales for investors. The stocks have had great runs in 2018, yet are not overvalued by conventional standards. Take a look at these 4 small caps and you’ll likely either buy one of their products, or add one of their stocks to your portfolio.
Disclaimer: The author and Spotlight Growth has no positions in any of the stocks mentioned in this article. Nor does either party currently have any relationship, or any other conflicts of interest, with any of the companies mentioned in this article. This content is meant for informational and entertainment purposes only and should not be meant as a recommendation to buy or sell any securities. Please visit a licensed financial representative to determine what investments are right for you.
Article By: Steven Adams