The stock market can be a tumultuous place, a reality that extends to even the most established brands, but smart investors know these drops are sometimes golden opportunities. We are going to show you two popular stocks that fell out of bed over the last year but Wall Street expects will see gains over 70% through the next 12 months.

Johnson Outdoors Inc.

Johnson Outdoors Inc. (NASDAQ: JOUT) owns leading global outdoor recreation equipment brands such as fishing favorite Minn Kota, camping royalist Eureka, and Scubapro for scuba diving enthusiasts. Despite its strong brand presence and loyal customer base, the company’s stock price has taken a big dive over the past year, plunging by 30%. Johnson Outdoors’ stock is trading at $43.90 per share currently.

Johnson Outdoors’ future looks bright due to the company’s innovative camping and fishing product lines along with its strategic marketing initiatives.  These business implementations will make 2024 the year of Johnson Outdoors, according to Wall Street. Executives bet heavily on the company’s consumer-only strategy, and now analysts are projecting that investors who jump into Johnson Outdoors could have shares soar to $75 within only twelve months for a return north of 70%.

The world is scrambling out of the pandemic and into Mother Nature’s loving arms, such as Minn Kota.  That cue couldn’t come at a better time for Johnson Outdoors. As folks emerge from a seemingly unending winter of being indoors, one of the things they can’t wait to do – according to UBS – is hit the great outdoors, and Johnson Outdoors’ collection of fishing, camping, and diving equipment is going to be there waiting for them. That and strong sales post-COVID are just two ways that Johnson Outdoors’ management showed they could be nimble and fast despite a lean year, and laced with high-quality products, it’s pretty clear to Wall Street that this time Johnson’s Outdoors is the smooth-pebble road that every investor should be on.

Traeger, Inc.

Traeger, Inc. (NYSE: COOK) is a leading manufacturer of wood pellet grills and accessories, known for its innovative technology and superior grilling experience. The company’s stock price has suffered throughout this past year, down 37.4%. Currently, Traeger’s stock is trading at $2.04 per share.

Despite this decline, Wall Street analysts are bullish on the forward-looking prospects of Traeger. The company has powerful brand recognition, a loyal customer base, and an expanding product line, all of which align the company for significant growth in the coming year. Wall Street analysts have set a 12-month price target of $3.50 for the stock, which equates to a nearly 70% gain for those who purchase now.

Recent distribution deals to move the company’s products into retailers like The Home Depot, Inc. (NYSE: HD), alongside possible distribution partnerships with celebrities, will only push the company further. As more people discover the joys of outdoor cooking and entertaining, Traeger is well-positioned to capture a significant share of this growing market.  Traeger is a major beneficiary. If you’re looking to capitalize on this trend, with a passionate management team and plenty of game-changing innovation coming in the future, now is the time to do some financial analysis on Traeger and decide for yourself if the stock price will increase.

Closing Thoughts

While Johnson Outdoors and Traeger have seen significant declines in their stock prices over the past year, they have both been awarded a rosy eye from Wall Street analysts, who see a very clear 70% gain over the impending 12 months in sight for each popular brand. The next consumer cash comes flowing into the market this hot summer, keep your eye open.  There could be some volatility in the short term.  These popular brands present a compelling investment opportunity for those willing to look beyond the short-term volatility and focus on the long-term growth potential.

As with any investment, it’s important to do your research and make sure your risk tolerance meets the potential reward of the investment. In this case, Johnson Outdoors and Traeger provide the opportunity to capitalize on the reinvigorated industries of outdoor recreation and grilling. That could put investors looking to buy in now in a position to profit as the companies start to realize the benefits of their continued growth over the coming year.

About the Author: Amit Nar can be followed on X.

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