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Power Lunch

Power Play: Bullish case for recreation stocks

Mercury boat engines sit on display at the New York Boat Show inside the Jacob Javits Convention Center in New York, U.S., on Friday, Jan. 8, 2016.
John Taggart | Bloomberg | Getty Images

Brunswick and Vista Outdoor are trading in opposite directions, with Brunswick down 28 percent over the past year and Vista up 20 percent. But Art Hogan, chief market strategist at Wunderlich Securities tells CNBC's "Power Lunch" on Monday he is bullish on both recreation companies.

He believes low fuel prices will lead to increased boat usage and higher sales of new boats and marine engines. "As the number 1 player in both engines and powerboats in the U.S., Brunswick [is] well-positioned to benefit from strengthening sales trends in both markets," Hogan said.

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With Vista Outdoor, Hogan sees a boost from new firearms.

"Should consumers flock to retailers to purchase these new models, we would expect sales of ammunition and accessories to rise commensurately," Hogan said.

Brunswick and vista are both lower during trading.