The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Harley-Davidson (NYSE: HOG) and the rest of the consumer discretionary - leisure products stocks fared in Q4.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Leisure products companies manufacture recreational goods such as bicycles, marine vessels, fitness equipment, camping gear, and musical instruments. Tailwinds include heightened outdoor-activity participation, health-and-wellness awareness, and periodic innovation cycles that drive trade-up purchases. Headwinds are pronounced: demand is highly discretionary and sensitive to economic cycles—consumers readily defer big-ticket leisure purchases during downturns. Post-pandemic normalization has created excess channel inventory after demand surged then retreated. Raw-material and shipping cost inflation squeezes margins, while competition from low-cost imports and a fragmented market make pricing power elusive for most players.

The 12 consumer discretionary - leisure products stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 4.6% while next quarter’s revenue guidance was 1.9% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.1% since the latest earnings results.

Slowest Q4: Harley-Davidson (NYSE: HOG)

Founded in 1903, Harley-Davidson (NYSE: HOG) is an American motorcycle manufacturer known for its heavyweight motorcycles designed for cruising on highways.

Harley-Davidson reported revenues of $496.2 million, down 27.8% year on year. This print exceeded analysts’ expectations by 3.4%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Harley-Davidson delivered the slowest revenue growth of the whole group. Unsurprisingly, the stock is down 8.5% since reporting and currently trades at $18.44.

Read our full report on Harley-Davidson here, it’s free.

Best Q4: Smith & Wesson (NASDAQ: SWBI)

With a history dating back to 1852, Smith & Wesson (NASDAQ: SWBI) is a firearms manufacturer known for its handguns and rifles.

Smith & Wesson reported revenues of $135.7 million, up 17.1% year on year, outperforming analysts’ expectations by 8.1%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Smith & Wesson scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 27.4% since reporting. It currently trades at $15.02.

Is now the time to buy Smith & Wesson? Access our full analysis of the earnings results here, it’s free.

Malibu Boats (NASDAQ: MBUU)

Founded in California in 1982, Malibu Boats (NASDAQ: MBUU) is a manufacturer of high-performance sports boats and luxury watercrafts.

Malibu Boats reported revenues of $188.6 million, down 5.8% year on year, exceeding analysts’ expectations by 4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.

As expected, the stock is down 22.4% since the results and currently trades at $26.87.

Read our full analysis of Malibu Boats’s results here.

Brunswick (NYSE: BC)

Formerly known as Brunswick-Balke-Collender Company, Brunswick (NYSE: BC) is a designer and manufacturer of recreational marine products, including boats, engines, and marine parts.

Brunswick reported revenues of $1.33 billion, up 15.5% year on year. This number beat analysts’ expectations by 10.3%. It was a strong quarter as it also logged a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Brunswick delivered the biggest analyst estimates beat but had the weakest full-year guidance update among its peers. The stock is down 13.1% since reporting and currently trades at $73.19.

Read our full, actionable report on Brunswick here, it’s free.

Clarus (NASDAQ: CLAR)

Initially a financial services business, Clarus (NASDAQ: CLAR) designs, manufactures, and distributes outdoor equipment and lifestyle products.

Clarus reported revenues of $65.41 million, down 8.4% year on year. This result missed analysts’ expectations by 5%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ revenue estimates and a significant miss of analysts’ adjusted operating income estimates.

Clarus pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is down 8.7% since reporting and currently trades at $2.83.

Read our full, actionable report on Clarus here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.