Check Out These Travel Stocks In The Stock Market Today
As we enter a holiday-shortened week, investors may be keeping an eye out for travel stocks. For one, travel restrictions in various countries have largely been lifted thanks to strong global vaccination efforts. With consumers being stuck at home for the past couple of years and the summer season incoming, who couldn’t use a vacation right now? Although the latest inflation reports may be concerning, it seems that consumers are still keen on traveling thanks to pent-up demand to explore the world.
According to a report by the International Air Transport Association (IATA), return to profitability has started to regain its momentum in the aviation industry. In the report released yesterday, the IATA upgraded its financial outlook for the airline industry for the year. Besides that, it also forecasts the industry to narrow its losses this year. Take for instance Delta Air Lines (NYSE: DAL) and American Airlines (NASDAQ: AAL). According to their first-quarter earnings report, they expect a return to profitability this quarter, aligning with the recovery narrative. Given these prospects, here are five travel stocks to watch in the stock market today.
Travel Stocks To Buy [Or Sell] This Week
- JetBlue Airways Corporation (NASDAQ: JBLU)
- Expedia Group Inc. (NASDAQ: EXPE)
- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
- Vail Resorts Inc. (NYSE: MTN)
- Hilton Grand Vacations Inc. (NYSE: HGV)
JetBlue Airways
Starting us off is the low-cost airline company, JetBlue. The company operates over 1,000 flights daily and serves 100 domestic and international network destinations. These destinations span the U.S., Mexico, the Caribbean, Central America, South America, and Europe. Additionally, JetBlue’s differentiated product combined with its competitive cost structure enables JetBlue to compete effectively in high-value geographies.
In the ongoing takeover battle for Spirit Airlines (NYSE: SAVE), JetBlue yesterday boosted its takeover offer for Spirit as it works hard to convince the low-cost carrier to accept its offer over Frontier Airlines’ (NASDAQ: ULCC) bid. According to JetBlue, its proposal represents a 68% premium to the implied value of Frontier’s offer. Spirit last week also said that it was in talks with JetBlue over its offer and is expected to decide on the proposal by June 30. As the takeover continues to unfold, will you be keeping an eye on JBLU stock?
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Expedia Group
Expedia is an online travel shopping company that serves consumers and small businesses in the travel industry. Through its wide array of websites, consumers have access to Expedia’s travel fare aggregators and travel metasearch engines. As countries around the world start welcoming travelers once again, I could see why investors may be keen on investing in EXPE stock.
Yesterday, Expedia announced a series of new initiatives and incentives that are targeted to help travel advisors benefit from pent-up demand over the summer. This would include an expansion of the Expedia Travel Agent Affiliate Program (TAAP) to new markets, promotions to drive more bookings, and increased advisor compensations on ‘Premium Plus’ properties. According to research carried out by the company, more than three-quarters of people plan to travel in the next year and will take three trips on average. As such, this move aims to capitalize on the boosted travel demand across the globe. Given this news, will you be watching EXPE stock?
Norwegian Cruise Line Holdings
Another travel stock to consider is Norwegian Cruise Line or Norwegian for short. Being the third-largest cruise line in the world, the company boasts a combined fleet of 28 ships with nearly 60,000 berths. It operates cruise brands such as Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. Furthermore, these brands offer itineraries to more than 490 destinations worldwide. The company also has nine more ships scheduled for delivery through 2027, comprising approximately 24,000 berths.
Earlier this month, analysts at Susquehanna initiated coverage on Norwegian. Notably, the firm gave the cruise line company a “positive” rating with a $20 price target on NCLH stock. Analyst Christopher Stathoulopoulos noted that Norwegian had shown a track record of balancing capacity and yield growth. Despite being the smallest of the ‘Big 3’ cruise lines, Norwegian manages to lead in these areas. Given this, would you invest in NCLH stock?
Vail Resorts
Next, we have Vail Resorts. For the uninitiated, Vail is among the top names in the ski resort business. The company operates through three segments. Most notably, its Mountain segment owns and operates 40 mountain resorts throughout three countries. Next to that, its Vail Resorts Hospitality segment owns luxury hotels under the RockResorts brand, condominiums, and golf courses. And finally, its Vail Resorts Development Company oversees property development and real estate holdings. Last month, the company posted its financials for the third quarter of fiscal 2022.
Getting straight to it, Vail reported a total net revenue of $1.18 billion, a commendable leap of 32.3% from a year ago. As for its earnings, the ski resort company raked in a net income of $372.6 million, or $9.16 per diluted share during the quarter. For comparison, it brought in $274.6 million, or $6.72 per diluted share in the prior year. In the same earnings report, Vail shared its outlook for the year. Namely, it updated its EBITDA guidance to be between $828 million and $842 million. All in all, is MTN stock a buy?
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Hilton Grand Vacations
Last, but not least, we have Hilton Grand Vacations (HGV), 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, HGV reported its first-quarter financials.
Firstly, the company reported total revenue of $779 million for the quarter, compared to $235 million a year earlier. Secondly, net income for the quarter came in at $51 million compared to a loss of $7 million year-over-year. Accordingly, diluted earnings per share for the quarter were $0.42. Moreover, its member count increased for the seventh straight quarter as well, according to the company. In the same earnings report, HGV also provided its full-year 2022 outlook. Specifically, the company is raising its Deferral Adjusted EBITDA range to $960 million to $990 million, from the prior range of $915 million to $935 million. Given this news, should you add HGV stock to your watchlist?
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