Buy 3 Outdoor Industry Stocks With Double-Digit Price Upside for Q4

Zacks Investment Research highlights the resilient outdoor industry, recommending three 'Buy'-rated stocks—Carnival (CCL), Norwegian Cruise Line (NCLH), and Deckers Outdoor (DECK)—for double-digit price upside by Q4 2025. Carnival is driven by strong travel demand and raised 2025 guidance, with an average price target upside of 12.8%. Norwegian Cruise Line benefits from robust consumer demand and record advance bookings, showing a 21.9% average price target upside. Deckers Outdoor, propelled by strong HOKA and UGG brand performance and international expansion, has an average price target upside of 20.9%.

Analysis

The outdoor industry is demonstrating resilience, propelled by secular shifts in consumer values toward health and experience-driven lifestyles. Within this theme, both the travel and apparel segments show strong fundamental drivers. In travel, cruise operators Carnival (CCL) and Norwegian Cruise Line (NCLH) are benefiting from robust consumer demand, elevated onboard spending, and strong booking trends. Carnival raised its full-year 2025 guidance, projecting significant 42.3% earnings growth on 6% revenue growth, supported by fleet optimization. Norwegian exhibits similar strength, reporting a record $4 billion in advance ticket sales and forecasting 13.2% earnings growth. In the apparel and footwear segment, Deckers Outdoor (DECK) is capitalizing on brand momentum, with its HOKA and UGG lines driving record first-quarter results. DECK's growth is notably fueled by international markets, which saw a 49.7% year-over-year revenue surge in the last reported quarter. While Deckers projects strong 9% revenue growth, its earnings are expected to be nearly flat; however, this is counterbalanced by a significant 17.9% upward revision in consensus earnings estimates over the past 60 days, suggesting growing analyst optimism.

Key Decisions for Investors

• Investors seeking exposure to the sustained travel recovery could consider Carnival (CCL) and Norwegian (NCLH), given their strong booking pipelines and positive guidance, while noting NCLH's higher average price target upside of 21.9% and more limited downside risk of 4% cited in the report.
• For Deckers Outdoor (DECK), investors should weigh the powerful brand momentum and exceptional international sales growth against the company's forecast for flat earnings, recognizing that the sharp 17.9% upward revision in earnings estimates could signal potential for positive surprises.
• Given that all three companies are presented as having double-digit upside potential, investors should monitor the key performance metrics highlighted in the analysis—booking volumes for cruise lines and brand-specific sales growth for Deckers—as continued strength in these areas is crucial to achieving the cited price targets.