Four sportswear stocks that may be a good fit for your portfolio

Improving U.S. economy and changing fitness habits in emerging markets are tailwinds for these companies.

Vikram Barhat 19 January, 2016 | 6:00PM

There is a growing overlap between fitness and fashion clothing. The bulk of that space is occupied by the athletic-gear industry. Far from the 70s tracksuit days, the industry today is dominated by trend-setting companies bent on bringing sporty apparel -- also known as activewear and sportswear -- out of gyms and sports arenas, and into the streets.

Consumers are following the lead. Whether yoga pants or running shoes, they are buying high-performance gear not just for fitness activity, but also to sport them around town. Sports apparel and footwear sales have grown 42% worldwide over the past seven years, according to a report from Morgan Stanley. The report projects that the US$270 billion industry could add another US$83 billion in sales by 2020, clocking more than 30% growth.

Sportswear companies are enjoying ever stronger prospects for growth due to an improving U.S. economy and an uptick in the health-and-fitness trend in emerging markets. Some of these companies have sound fundamentals, strong brand recognition, expansive geographic footprint, and a product mix that caters to a wide demographic range of consumers and their tastes, according to Morningstar equity research.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Dick's Sporting Goods Inc38.87 USD-4.52
Nike Inc B92.00 USD-0.97
Ralph Lauren Corp Class A101.58 USD-1.15
VF Corp76.39 USD-1.10

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.