Search a ticker

Categories
Featured Investing Stock Market Today Stocks to Watch Travel Stocks

5 Best Travel Stocks To Watch In May 2022

Should investors’ invest in these top travel stocks as demand soars?

travel stocks

5 Travel Stocks To Add To Your May 2022 Watchlist

As demand for spring and summer travel remains high, travel stocks could be worth keeping tabs on in the stock market. Despite the higher flight ticket prices, travelers appear to be shrugging off the increased costs from rising inflation. After all, who couldn’t use a vacation after being stuck at home for so long? According to the U.S. Travel Association, travel spending reached $83 billion in February 2022, just 6% below pre-pandemic levels. As such, there could still be room for a bigger rebound. 

Take United Airlines (NASDAQ: UAL) for instance. For its second quarter, United is expecting the highest quarterly sales in its history, with revenue per passenger mile up 17% over 2019. In addition to that, it is also forecasting a 10% operating margin. Next, we also have Delta Air Lines (NYSE: DAL). Notably, Delta expects a return to profit this quarter thanks to a jump in bookings and fares. Its forecasts suggest that second-quarter capacity will be at 84% of 2019 levels. With these airlines feeling bullish on their prospects, here are five of the best travel stocks to watch in the stock market today.

Travel Stocks To Buy [Or Sell] Right Now

JetBlue

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. Earlier this week, JetBlue reported its earnings for the first quarter of 2022. 

Jumping in, the company brought in $1.73 billion in revenue. For comparison, this is 7.2% short of the pre-pandemic revenues in 2019. Nonetheless, revenue more or less matched the figures analysts were expecting. As for its earnings, JetBlue reported a narrower-than-expected loss of $0.79 per share for the quarter. Despite all this, the company sees a strong acceleration in demand. “We delivered positive year-over-three revenue growth in the month of March as we exited the quarter with tremendous revenue momentum driven by very strong underlying travel demand across all of our core segments,” said Robin Hayes, JetBlue’s CEO. As the low-cost airline gets back on its feet, will you be watching JBLU stock?

[Read More] Stock Market Today: Dow Jones, S&P 500 Climbs; Meta Beat Expectations With Solid Earnings

Expedia Group 

Following that is Expedia, 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 to reopen their borders to welcome travelers, I could see why investors may be keen on investing in EXPE stock. Yesterday, Expedia and Qtech Software, a travel tech software provider, announced an expanded collaboration. 

Namely, the collaboration aims to provide access to Expedia’s travel supply to travel business globally through OTRAMS GO, Qtech’s flagship platform. Prior to this collaboration, smaller travel businesses were forced to integrate inventories from wholesalers. This ate into their margins and restricted its range of hotel offerings to customers. However, through OTRAMS GO, travel businesses of all sizes will now have greater access to premium hotel content and technology. All in all, this will help generate growth, higher revenue, and improve efficiency in the travel ecosystem. Given this expanded collaboration, should you invest in EXPE stock?

Booking Holdings

Booking Holdings (BKNG) is the world’s leading provider of online travel and related services. The company renders its services to consumers and local partners in more than 200 countries and territories through its notable brands. These include the likes of Booking.com, Priceline, Agoda, Rentalcars.com, KAYAK, and OpenTable. In 2019, consumers booked 845 million room nights of accommodation, 77 million rental car days, and 7 million airplane tickets using its websites.

In a note issued to investors on Monday, Jefferies (NYSE: JEF) lifted its first-quarter 2022 earnings per share estimates for BKNG. Analyst J. Colantuoni now forecasts that the BKNG will post earnings per share of $0.75 for the quarter, up from its prior forecast of $0.73. Jefferies also retains its Buy rating and has a $2,900 price target on BKNG stock. BKNG will also be reporting its first-quarter 2022 financial results on Wednesday next week. As such, will you be eyeing BKNG stock?

[Read More] 5 Top Automotive Stocks For Your Late April 2022 Watchlist

American Airlines

Another top travel stock to watch is American Airlines. In short, the company is a leading name in the global air travel industry. On average, it operates nearly 6,700 daily flights to almost 350 destinations across 50 countries. On top of that, American is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. Last Thursday, American reported its first-quarter 2022 financial results.

For starters, the airline brought in a revenue of $8.9 billion. This represents an impressive recovery to 84% of the revenue generated in the same period in 2019.  Looking ahead, the American expects second-quarter capacity to be approximately 92% to 94% of its second-quarter 2019 figures. In fact, March has been the first month since the pandemic where its revenues surpassed 2019 levels. Bookings since then have continued to rise. Besides that, the company also expects total revenue to be 6% to 8% higher than the second quarter of 2019. As American continues its fight in returning to profitability, should you add AAL stock to your watchlist?

[Read More] 3 Tech Stocks To Watch Today After Earnings Reports

Trip.com

Finally, we have Trip.com, a leading online travel company that serves as a one-stop travel platform. It integrates a comprehensive suite of travel products and services and differentiated travel content. Impressively, it is currently one of the largest online travel agencies in China and also one of the largest travel service providers in the world. In March, the company reported its full-year financials for the fiscal year 2021. 

For starters, net revenue for the year came in at $3.1 billion, representing a 9% increase in year-over-year revenue. Besides that, accommodation reservation revenue was $1.3 billion, up by 14% from 2020. This accounts for 41% of total revenue, a rather sizable chunk. In the past year, the company has been focusing on expanding its product offerings and improving its content capabilities. All of which will pave the way for its growth in the long term. Moving forward, Trip.com will continue to focus on its recovery in the Chinese domestic market while remaining ambitious on its vision towards global travel reopening. Given the positive outlook, should you buy TCOM stock?

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!!

By Joe Samuel

Joe Samuel is a dedicated stock market researcher and financial contributor. His love for the stock market started at a young age learning from his grandfather. Joe earned a bachelor of science degree in corporate finance and business management. After finishing college, he went the route of an entrepreneur starting numerous businesses and eventually became a financial contributor to a number of outlets including Seeking Alpha, Invesitng.com, and actively contributes to FactSet. At StockMarket.com, Joe looks for emerging stories. One of his traits is identifying new trends before they become mainstream. Whether it’s a biopharmaceutical company debuting a novel treatment or the next technology start-up developing a new platform, Joe looks to be on the cutting edge of that trend.

After years of living in New York, he made the move to Miami, Florida where he’s become an active member of the finance community. Joe has worked with early-stage companies in marketing and consulting capacities, which has given him an opportunity to see what makes companies tick. His viewpoint is that while corporate news is vital to any investment, it’s what isn’t “right in front of you” that can make a good investment great. His approach to the markets is one that aims to deliver information that might not be well-known. But through deep research and diligence, Joe has written about and been able to uncover time-sensitive information when seconds matter in the stock market today.

Joe enjoys covering several stock market sectors. These include commodities, finance, biotechnology, and technology; specifically AI & machine learning. His no-nonsense approach to the market gives readers a cut and dry view of the news that matters most and topics beginning to emerge as new trends in the stock market. He was early to the table with calls on things like the last gold rush in 2019 and has been able to identify influential events and how they could impact certain industries.

During his free time, he enjoys spending time with his family and polishing up one new stock market trends. He’s also an avid car enthusiast with a passion for classic and muscle cars.

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments