Investing in the Pickleball Phenomenon: Top 3 Stocks to Watch
Pickleball, the sport that has been sweeping the nation for the past five years, is not just a game; it's a booming market with a promising future for investors. The sport has seen an unprecedented surge in popularity, with over 48 million U.S. adults trying their hand at pickleball in the last year. This surge has brought forth a plethora of opportunities in various sectors, including equipment manufacturing, apparel production, and e-commerce platforms. Here, we delve into three stocks that stand to benefit significantly from the pickleball boom.
1. Life Time Group Holdings, Inc. (NYSE: LTH)
Minnesota-based Life Time Group Holdings is a major player in the pickleball landscape, owning over 160 athletic resort destinations across the U.S. and Canada. The company operates more than 500 permanent pickleball courts, meeting the sport's growing demand. Life Time Pickleball has witnessed a 673% increase in unique participants from January 2022 to June 2023, showcasing the sport's pulling power. The company's continuous investment in pickleball facilities, both indoor and outdoor, promises a healthy long-term growth outlook.
2. Skechers U.S.A., Inc. (NYSE: SKX)
Skechers has carved out a niche in the pickleball footwear market, offering a range of affordable sneakers for both novices and pros. The company, which is the official footwear sponsor for all professional leagues and the grassroots USA Pickleball organization, is expanding its horizons to other countries, eyeing the next wave of growth. Skechers reported record Q2 sales in July 2023, partly attributed to the high demand for pickleball shoes, presenting a potential winning entry point for investors.
3. Carvana Co. (NYSE: CVNA)
Carvana, the e-commerce platform for used cars, is another company reaping the benefits of the pickleball surge. As the main sponsor behind the Carvana Pro Pickleball Association (PPA) Tour, the company has managed to enhance its brand visibility significantly. The PPA events, featuring the world's top talent, have been regularly aired on major networks like ESPN and CBS, bringing Carvana into millions of homes. This exposure to the nation's fastest-growing sport might be an underappreciated driver in Carvana's turnaround story.
