We recently published a list of the 12 Best Leisure Stocks to Buy Right Now. In this article, we are going to take a look at where OneSpaWorld Holdings Limited (NASDAQ:OSW) stands against the other best leisure stocks to buy right now.

Overview of the Global Leisure Industry

According to Allied Market Research, the global leisure travel market had a market size of $1.2 trillion in 2023. It is anticipated to grow at a compound annual growth rate of 18.3% between 2024 and 2033, reaching $6.2 trillion by the end of the forecast period. The rise of social media is one of the key reasons behind the continued growth in leisure travel, as people are gaining increasing awareness and exposure to various industry trends.

The outdoor leisure market is another significant industry in the domain. Outdoor leisure encompasses recreational open-air activities typically conducted in semi-natural or natural environments. According to Business Research Insights, the market was valued at around $13.15 billion in 2024 and is expected to grow at a compound annual growth rate of 6.95% between 2025 and 2033, reaching $24.07 billion by the end of the forecast period.

READ ALSO: 10 Best Video Game Stocks to Buy Now and 12 Best Grocery Store Stocks to Buy Now.

How is the American Consumer Behaving?

A report by Deloitte showed that the leisure industry continued to rebound in fiscal Q3 2024, with total net expenditure increasing from -10.3% in fiscal Q2 2024 to -8.5% in fiscal Q3 2024, reaching the highest level since fiscal Q1 2022. The report showed that nine out of eleven leisure categories reflected increased spending, with short holidays and eating out topping the charts with a 4.7 and 5.5 percentage points increase, respectively.

Although long vacations decreased in popularity due to economic uncertainties and growing expenses, short vacations gained public acknowledgment, as consumers are prioritizing affordability. Casual dining rose by 1.7% year on year, with three new locations opening each week. In addition, live sports, festivals, and concerts drove a 4.1 percentage point increase in net spending on culture and entertainment. Leisure activities at home and pub spending also showed increases, climbing by 1 and 1.7 percentage points, respectively.

However, Deloitte Consumer Tracker anticipates consumer spending to fall in nine out of eleven categories in fiscal Q4 2024. Longer holidays and eating out are expected to have the highest fallout, with a decrease of -8.1 points and -5.9 points, respectively. Cautious consumer spending amid potentially rising inflation and economic uncertainties is anticipated to affect the hospitality industry, necessitating value-driven tactics to attract consumers.

Our Methodology

We sifted through stock screeners, online rankings, and ETFs to compile a list of 25 leisure stocks. We then selected the top 12 with the highest number of hedge fund holders as of fiscal Q4 2024. We sourced the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund sentiment.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A well-equipped wellness center with classes and health services.

OneSpaWorld Holdings Limited (NASDAQ:OSW)

Number of Hedge Fund Holders: 29

OneSpaWorld Holdings Limited (NASDAQ:OSW) is a health and wellness services company that operates in around 195 cruise ships at approximately 50 destination resorts around the globe. Its services include self-service fitness facilities, salons, skin care, traditional body services, pain management, comprehensive body composition analyses, detoxifying programs, advanced medi-spa services, and more. The company’s brand portfolio encompasses ELEMIS, Kerastase, BOTOX Cosmetic, Dysport, Restylane, Perlane, Thermage, CoolSculpting, truSculpt 3D, and truSculpt iD, and others. OneSpaWorld Holdings Limited (NASDAQ:OSW) operates on several cruise lines, including Costa Cruises, Norwegian Cruise Line, Regent Seven Seas Cruises, and Seabourn Cruise Line, and more.

The company reported strong fiscal Q4 2024 results, with total revenues growing 11% to $217.2 million compared to $194.8 million in fiscal Q4 2023. Total revenues for 2024 increased 13% to a record $895 million compared to $794 million in fiscal year 2023. Similarly, income from operations rose 37% to $17.2 million compared to $12.6 million in fiscal Q4 2023.

Fiscal 2024 marked the second consecutive year of record performance by OneSpaWorld Holdings Limited (NASDAQ:OSW). The company’s positive operations are attributed to its strong financial position, innovation across its business portfolio, and global operations. The company ranks 12th on our list of the 12 best leisure stocks to buy right now.

Ariel Small Cap Value Strategy stated the following regarding OneSpaWorld Holdings Limited (NASDAQ:OSW) in its Q4 2024 investor letter:

“Provider of wellness services onboard cruise ships and destination resorts, OneSpaWorld Holdings Limited (NASDAQ:OSW), also traded higher as strong consumer trends drove another significant earnings beat and subsequent raise in full year guidance. Meanwhile, management strengthened the balance sheet by paying down and restructuring its expensive first lien term loan as well as ramped up capital returns to shareholders through buybacks and dividends.”

Overall, OSW ranks 12th on our list of the best leisure stocks to buy right now. While we acknowledge the potential of OSW as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OSW but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article is originally published at Insider Monkey.