5 Travel Stocks For Your Watchlist Today
With summer approaching, travel stocks could be worth paying attention to in the stock market. After a couple of years of staying in, people are likely feeling the pent-up urge to finally travel again. Despite the soaring airfares, Americans seem to be shrugging it off, with demand outstripping the supply of seats. Specifically, flight tickets rose by 18.6% in April from the previous month, according to the U.S. Bureau of Labor Statistics. In fact, airfares were one of the largest contributors to the 8.3% rise in last month’s CPI.
Michelle Meyer, the chief U.S. economist at the Mastercard Economics Institute, said that the strong growth in wages coupled with savings meant that consumers “may be able to tolerate price increases for longer, particularly for a type of spend that they are prioritizing.” Seemingly solid consumer balance sheets aside, there are plenty of exciting developments amongst the top airline stocks around as well. Take Spirit Airlines (NYSE: SAVE) for example. Amidst its ongoing merger talks with Frontier Group (NASDAQ: ULCC), the company’s shareholders are now receiving a tender offer from JetBlue (NASDAQ: JBLU). JetBlue is currently offering $30 per share over Frontier’s $21.66 per share bid. In the larger scheme of things, the travel industry continues to gain momentum. And on that note, here are five other travel stocks to check out in the stock market today.
Travel Stocks To Watch Right Now
- Wynn Resorts Ltd. (NASDAQ: WYNN)
- Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH)
- Booking Holdings Inc. (NASDAQ: BKNG)
- Avis Budget Group Inc. (NASDAQ: CAR)
- American Airlines Group Inc. (NASDAQ: AAL)
Wynn Resorts is a developer and operator of high-end hotels and casinos. These would include the likes of Wynn Las Vegas, Encore Boston Harbor, Wynn Macau, and Wynn Palace, Cotai. In addition to that, the company also operates via its online gaming division, Wynn Interactive. The likes of which offer world-class online casino and sports betting experiences to consumers across the U.K. and the U.S. Last week, the company reported its financial results for the quarter ended March 31, 2022.
According to the report, operating revenues were $953.3 million for the quarter, representing an increase of over 29% from $736.7 million in the prior year. Besides, Wynn managed to narrow its losses by a considerable amount. Namely, it reported a loss of $183.3 million as compared to $281.0 million in 2021. “Our first-quarter results reflect continued strength at both Wynn Las Vegas and Encore Boston Harbor where our teams’ unrelenting focus on five-star hospitality and world-class experiences combined with very strong customer demand to deliver a new first-quarter record for Adjusted Property EBITDA at both properties,” said CEO Craig Billings. Given the positive development, is WYNN stock a buy?
Norwegian Cruise Line
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.
On May 10, the company reported its first-quarter financials. Diving in, Norwegian announced that it has become the first major cruise operator to return its entire fleet back to service. The company reported that quarterly revenue increased to $521.9 million compared to $3.1 million last year due to the resumption of its cruises. In the same report, Norwegian said it expects to see pricing strength for all future periods. All in all, should you watch NCLH stock as it sets sail?
Booking Holdings 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.
Earlier in the month, it posted its first-quarter earnings results for the year. According to the press release, the company’s revenue saw an increase of 136% to $2.7 billion compared to the year before. Moving on, non-GAAP net income came in at $161 million, compared to a net loss of $215 million last year. Impressively, the company also reported $27 billion in gross booking in the past quarter, the highest quarterly amount in its history. Given this, should you invest in BKNG stock?
Avis Budget Group
Avis Budget is a vehicle rental company with operations around the world. In fact, it is a leading global provider of mobility solutions through its portfolio of brands and has over 10,000 rental locations. Its Zipcar brand is a leading car-sharing network as well. Through all of this, the company continues to reinvent the car rental experience, using data-driven intelligence and company digitization.
In the company’s latest earnings report, Avis saw quarterly revenue increase by 77% year-over-year to $2.43 billion. Notably, this figure was already higher compared to pre-pandemic levels. Along with that, net income for the quarter came in at $527 million and its adjusted EBITDA was $810 million, the best first-quarter adjusted EBITDA in its history. Finally, Avis also ended the quarter with $550 million in cash and cash equivalents. Thanks to diligent fleet management and continued cost optimization, the company was able to bring in strong numbers this past quarter. And with that, should you add CAR stock to your watchlist?
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Last but not least, we have American Airlines or American for short. As a leading name in the global air travel industry, the company operates nearly 6,700 daily flights to almost 350 destinations across 50 countries. On top of that, AAL is a founding member of the Oneworld alliance, whose members serve more than 1,000 destinations with flights to over 150 countries. Last month, the company posted its first-quarter 2022 earnings.
In it, American reported revenues of $8.9 billion, representing an impressive recovery to 84% of the revenue generated in the same period in 2019. In the same report, American shared its forecasts for the second quarter. Namely, the company expects revenues to grow by 6% to 8% compared to 2019. In fact, March has been the first month since the pandemic where its revenues surpassed 2019 levels. Besides that, capacity is forecasted to be approximately 92% to 94% of its second-quarter 2019 figures. All things considered, could you see AAL stock-taking off?