Are These The Best Reopening Stocks To Invest In This Month?
As investors continue to digest yesterday’s latest set of economic data, reopening stocks could be worth noting. With inflation being a core theme in the broader stock market today, this could be the case. After all, some would argue that surging inflation is a sign that things are heating up on the economic front. By extension, as global economies recover most would seek to live with the ongoing pandemic. Because of all this, the reopening trade could be worth revisiting for some during the current earnings season.
For one thing, companies in this part of the stock market are not sitting idly by now. On one hand, you have entertainment goliath Disney (NYSE:DIS). Accordingly, from its latest quarterly earnings report, the company is seeing a massive rebound in its parks and tourism business. To put things into perspective, the division raked in a total revenue of $7.2 billion for the quarter. This would be double its total from the prior-year quarter.
At the same time, airline operators are also hard at work facilitating the return of travel. Evidently, Spirit Airlines (NYSE: SAVE) and Frontier Airlines (NASDAQ: ULCC) are merging their operations. This combination will see the duo become the fifth-largest airline in the U.S. With all this activity among reopening stocks, could one of these firms be worth watching today?
Top Reopening Stocks To Buy [Or Sell] Today
- Zillow Group Inc. (NASDAQ: ZG)
- United Airlines Holdings Inc. (NASDAQ: UAL)
- Airbnb Inc. (NASDAQ: ABNB)
- Yelp Inc. (NYSE: YELP)
- Expedia Group Inc. (NASDAQ: EXPE)
Zillow Group Inc.
Zillow Group is an online real-estate marketplace company. It is one of the top real estate websites in the U.S., building an on-demand real estate experience. In addition to for-sale and rental listings, the company also buys and sells homes directly in dozens of markets. The company’s Zillow Home Loans, its affiliate lender, provides its customers with an easy option to get pre-approved and secure financing for their next home purchase. Also, millions of people visit Zillow Group sites every month to start their home search. ZG stock is currently up by over 10% on today’s opening bell.
This comes after the company reported its fourth-quarter and full-year 2021 financial results. Diving in, revenue for the quarter was $3.9 billion, while full-year 2021 revenue was $8.1 billion. “Zillow has a rock-solid financial foundation and a core IMT business in which we are reporting record profits today. More interestingly, we have major untapped business potential due to our leading audience, brand, partner network, and R&D leadership,” said Zillow co-founder and CEO Rich Barton. The company also says that in 2021, nearly one-quarter of all buyers in the U.S. reached out to connect with Zillow during their shopping process. Despite that, Zillow generated revenue on an estimated 3% of total customer transactions. With the impressive financials, is ZG stock worth investing in at this moment?
United Airlines Inc.
Following that, we have United Airlines, a reopening company that operates one of the biggest airlines in the U.S. With over 1.7 million flights carrying more than 162 million customers under its wing, the company has one of the most comprehensive route networks among North American carriers. Last month, the company reported its fourth-quarter financials and reiterated its long-term commitments.
Firstly, the company achieved every major financial guidance target for its fourth quarter. It also set a new Net Promoter Score record in 2021. This is despite the sharp spike in coronavirus cases caused by the Omicron variant. Despite the short-term volatility, bookings for spring travel and beyond remain strong. The company also says that the latest wave of coronavirus has not altered the airline’s confidence in its future. Among its 2021 key highlights, the company announced the purchase of 270 new Boeing (NYSE: BA) and Airbus aircrafts, the largest combined order in its history and one of the biggest by an individual carrier in the last decade. All things considered, is UAL stock a buy right now?
Following that, we will be taking a look at Airbnb. By now, the vacation rental company’s name is already synonymous with booking a homestay. Whether it is travelers from abroad or locals looking for a quick getaway, Airbnb serves all. Overall, Airbnb’s platform is home to over 4 million hosts serving guests from across over 220 countries and regions worldwide. For investors looking to be on the reopening trade now, ABNB stock could be a go-to.
On February 3, 2022, the company announced that its Airbnb Hosts has hit an incredible milestone, earning a total of $150 billion since 2010. This includes $60 billion from the U.S. alone. New Airbnb Hosts have earned $6 billion since the pandemic began, and for listings that were first activated and booked in the third quarter of 2021, 50% received a booking within 3 days of activation. Given the prospects, is ABNB stock worth adding to your portfolio?
Another tech-based name to consider in the current reopening trade would be Yelp. While most would not immediately think of Yelp in this respect, the company remains a key player in all this. In brief, Yelp is a platform where users can contribute to and search for crowd-sourced reviews regarding businesses. Additionally, the company also runs a dine-in reservation service, Yelp Reservations. Through its offerings, the company plays a crucial role in bolstering businesses of varying sizes amidst the current reopening.
More importantly, YELP stock appears to be on the rise now thanks to the company’s latest quarterly report. In it, Yelp posted earnings per share of $0.30, more than double consensus projections of $0.14. Furthermore, the company’s net revenue is also at an admirable $1.03 billion, a record high. According to Yelp, immense strength in its advertising business is to thanks for the current quarter’s performance. CEO Jeremy Stoppelman notes that the record revenue in advertising comes from Yelp’s “services categories” alongside multi-location and self-serve channels. As such, would you consider YELP stock a top buy now?
Expedia Group Inc.
Topping off our list of reopening stocks today is Expedia Group, another travel-focused business. By and large, Expedia is an online travel shopping company. For the most part, it 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. Now, thanks to widespread vaccination efforts worldwide, consumers are seemingly eager to travel. This is apparent from Expedia’s fourth-quarter earnings report.
Notably, the company posted stellar figures across the board. For starters, Expedia’s earnings per share for the quarter currently stand at $1.06. This is well above consensus estimates of $0.69. Adding to that, the company’s total revenue for the quarter adds up to a whopping $2.3 billion. This translates to a massive year-over-year surge of 148%. According to CEO Peter Kern, pandemic impact throughout the quarter “was less severe and of shorter duration than previous waves.” Kern notes that this is a key factor for the company’s current momentum. Should pandemic conditions continue to improve, will you be keeping an eye on EXPE stock?