3 Leisure Stocks To Have On Your 2022 Radar
Leisure stocks appear to be among the most active stocks in the stock market today. By and large, this is apparent as some of the top names in the industry continue to report solid earnings. On one hand, you have the travel industry seeing a resurgence in consumer demand despite rising prices. The likes of which are due to ongoing energy supply constraints. Take American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) for instance. Both firms reported year-over-year revenue jumps of over 122% in their respective quarterly releases last month. Also, these two airline industry goliaths are projecting a return to profit by the end of the current year.
At the same time, we have car rental companies such as Vroom (NASDAQ: VRM) and Avis Budget Group (NASDAQ: CAR) continue to impress as well. This seems to be the case as travel-hungry consumers look towards more domestic vacation options as well. Not to mention, even the in-person entertainment scene continues to gain momentum. Evidently, AMC Entertainment (NYSE: AMC) is turning heads in the stock market now thanks to its latest quarterly earnings. This would be thanks to the cinema chain operator topping consensus analyst estimates at the top and bottom lines. Year-over-year, the company’s total revenue is up by a whopping 429%, signaling its ongoing recovery from the pandemic.
Across the board, it seems that consumers are intent on returning to their favorite leisure activities. Be it traveling, in-person entertainment variety, or any combination of the two, this is increasingly evident. With all that said, you might be keen to know the top leisure stocks around. Here are three making headlines now.
Best Leisure Stocks To Invest [Or Avoid] In 2022
- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
- Hilton Grand Vacations Inc. (NYSE: HGV)
- Marriott International Inc. (NASDAQ: MAR)
Norwegian Cruise Line Holdings Ltd.
Starting us off today, we have Norwegian Cruise Line, one of the largest cruise lines in the world. It operates the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It boasts a combined fleet of 28 ships with nearly 60,000 berths, these brands offer itineraries to more than 490 destinations worldwide. Furthermore, the company has nine additional ships scheduled for delivery until 2027. Today, the company reported its first-quarter financials and provided a business update.
Diving in, the company announced that it has become the first major cruise operator to return its entire fleet back to service. Total revenue increased to $521.9 million compared to $3.1 million in 2021 due to the resumption of its cruises. Furthermore, the company also says that its operating cash flow was slightly positive in March and it continues to see pricing strength for all future periods. The company’s advance ticket sales balance, including the long-term portion, increased from $418 million in the quarter to $2.2 billion as of March 31, 2022.
“Last week we reached the biggest milestone yet in our Great Cruise Comeback as Norwegian Spirit, the last ship in our fleet to resume sailing, welcomed guests onboard in Papeete, Tahiti. The herculean effort to restart our fleet would not have been possible without the incredible fortitude of the entire Norwegian team and the unwavering support of our key partners and stakeholders around the world,” said Frank Del Rio, president, and chief executive officer of Norwegian Cruise Line Holdings Ltd. The company also says that its strategy ahead is to ramp up occupancy in a disciplined manner to exceed historical net yield levels for the full-year 2023. All things considered, is NCLH stock worth investing in right now?
[Read More] What Are The Best Stocks To Invest In? 4 Lithium Stocks To Know
Hilton Grand Vacations Inc.
Hilton Grand Vacations is a leading global timeshare company. It operates a system of brand-name, high-quality vacation ownership resorts. The company has a reputation for delivering a consistently exceptional standard of service and provides unforgettable vacation experiences for guests and more than 710,000 owners. On May 9, 2022, the company also reported its first-quarter financials. HGV stock is up by over 7% on Tuesday’s afternoon trading session.
Firstly, the company reported total revenue of $779 million for the first quarter, compared to $235 million a year earlier. Secondly, net income for the quarter was $51 million compared to a loss of $7 million year-over-year. Diluted earnings per share for the quarter were $0.42. Member count increased for the seventh straight quarter as well according to the company. For the company’s full-year 2022 outlook, it is raising its Deferral Adjusted EBITDA range from $960 million to $990 million, from the prior range of $915 million to $935 million.
Hilton Grand Vacations also say that its EBITDA and margins are well ahead of its 2019 Pro-forma combined levels. Its diligent integration efforts have also enabled it to identify additional cost synergies from its Diamond Resorts International acquisition. Given this piece of news, is HGV stock worth adding to your portfolio?
[Read More] Top Liquefied Natural Gas Stocks To Buy Now? 4 Names To Know
Marriott International Inc.
Another name to consider in the global leisure industry now would be Marriott International. In brief, the company operates a massive hospitality portfolio consisting of over 8,000 properties throughout its 30 industry-leading brands. This network of leisure businesses spans 139 countries and territories worldwide. As one of the leading names in the hospitality space, Marriott could be another go-to for investors now. In turn, this would put MAR stock on their radars as well.
For one thing, the company’s latest financial update from last week could also be worth considering. For its first fiscal quarter, Marriott saw its 2022 comparable systemwide constant dollar Revenue per Available Room (RevPAR) surge 96.5% year-over-year worldwide. In the U.S. and Canada, this figure currently sits at 99.1%. On top of that, the company is also looking at earnings of $1.14 per share for the quarter. This is leaps and bounds above its loss of $0.03 in the same quarter last year.
Providing an overview of Marriott’s performance for the first quarter is CEO Anthony Capuano. He notes that the company saw the “largest surge in global demand since the pandemic began.” Looking forward, Capuano also adds that Marriott expects the robust demand trends from April to persist with cross-border travel gaining momentum. All in all, with Marriott seemingly firing on all cylinders now, would MAR stock be a top pick in your book?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!
