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The recreation industry apparently will have record profits in 1998 after a good first six months of the year with high US levels of employment, retail sales, and personal income. Business for most of the industry has also been strong enough in North America to absorb dislocations in other parts of the world. Investors who seek to outperform the market will find opportunites in those stocks which are rated 1 or 2 for timeliness.

Higher consumer incomes and demand have made 1998 a potential record year in sales and earnings for the recreation industry and few firms are forecast to have income shortfalls for the year. Advanced technological systems and the habit of adapting prices to spending sectors has also helped the industry to be competitive and prosper. There are several timely stocks in this industry for investors in 1998, although most are neutrally ranked.

New stock market highs, lower inflation, and other influences have allowed consumers to spend more on recreational goods and services in the 1990s, and this has had a beneficial effect on the industry. Speedway Motorsports Inc, Royal Caribbean Cruises Ltd, Carnival Corp, and Harley Davidson Inc have all been affected by this. Investors need to select timely stocks in 1998, as the industry's potential for appreciation limited.

High consumer confidence and increasing personal income are among the good business factors which are expected to help the recreation industry maintain its prosperity in 1998. In addition, effective cruise line sales promotion and technology are also favorably supporting expansion in this sector of the industry. Most of the shares in the recreation industry are ranked above average or better for investors and are expected to perform well.

Earnings for the recreation industry have increased during the first half of 1997, due in large part to new entities and the installation of information technology and sound management in established companies. The consolidation trend, especially among providers of leisure goods and services, has become a noticeable for investors, as well. However, investors must be aware of industry trends and shifts for successful selection of individual stocks.

The recreation industry as an entity should benefit from the predicted economic growth for 1997 and a few individual companies will score above average for Timeliness. However, the constant changing trends of consumers' recreational interests and the inability of most recreation companies to respond to change prevents any recreation industry company's stock from being outstanding. Few recreation securities offer major income.

Almost all recreation industry company stocks are expected to be outstanding investment opportunities for 1997 as they have high ratings for timeliness, risk, earnings growth and a variety of options. Recreation industry securities performed extremely well in 1996, there are job openings throughout the industry, they reported consistently strong earnings and consumers enjoy and support the products: all factors supportive of their strength and longevity.

Results in 1995 for the 14 companies which comprise the recreation industry were only mediocre compared to 1994. However, this can be misleading, as several companies such as Walt Disney Co are now part of the entertainment industry. There was a slowdown for equipment makers in 1995, but amusement provider profits may rise 25% in 1996. Several recreation stocks are good investments for 1999-2001, but most are ranked neutral for timeliness.

The recreation industry is moderately profitable in 1996, and this is expected to continue through 1997. The recreational equipment sector is outperforming the market and entertainment stocks are lagging, but equipment companies are expected to remain dynamic. For 1996 most of these stocks are ranked average or below in timeliness and investors must evaluate stocks on an individual basis for consideration.

Earnings will likely progress for the recreation industry in 1996 even though economic growth is slowing. Industry costs are generally low and not hampered by high consumer debt and unfavorable payroll trends. Movie makers, which had been takeover targets, are now acquiring other companies, while other companies are divesting assets. There are few timely stocks in this industry in 1996, but all have a chance to perform well.

Good revenues and earnings for the recreation industry are expected in 1996, but extended consumer credit could be a problem. Cruise line operators are doing well and expanding their fleets. Electronic game manufacturers are in a transition period, and recreational equipment makers are having impressive growth. These stocks are not among the most timely, but several issues have good three-to-five year appreciation potential.

The recreation industry is dominated by consolidation activity rather than solid earnings in the mid-1990s. The merger of Capital Cities/ABC into the Walt Disney Co is the most spectacular. Results have been mixed during 1994 for the equipment and entertainment sectors, but high earnings are expected for 1995 overall. This industry has little interest for investors, but several stocks have some potential for long-term appreciation.

The recreation industry comprises entertainment, recreational services, and equipment manufacturers, which accounts for 20% of industry profits. Earnings for the recreation industry are expected to rise 25% to 30% for 1995, compared to the 36% rise in 1994. Revenue is estimated to grow by 12%, and profits by 15%, in 1996. Most stocks in this industry are not timely due to market rather than business, factors.

Even though both Callaway and Cobra experienced higher earnings, their stock prices fell as investors also got reports of higher inventories for both companies. Gross margins declined and accounts receivable increased. Analysts expect lower earnings for the next quarter.