3 Top Leisure Stocks To Watch In June
As we continue to head towards a post-pandemic market, it comes as no surprise that leisure stocks are in focus. Indeed, the leisure industry appears to be gaining momentum in the stock market today. With widespread vaccination efforts and stimulus checks, consumers are likely looking to spend on leisure activities. In fact, a recent study conducted by professional services firm Deloitte seems to back this up. According to Deloitte, 22% of consumers who are looking to travel plan to spend “significantly more” on trips compared to 2019. As such, our focus for today will be on leisure companies that could benefit from the post-pandemic tourism boom.
After all, virtually most parts of the world have been homebound for more than a year now. Logically, this would result in a build-up of demand for tourism-related activities as more parts of the world reopen. Even now, we can see that some of the top names in the industry continue to prepare for busy times ahead. Earlier this month, TripAdvisor (NASDAQ: TRIP) announced that it would be bolstering its existing partnership with Trip.com (NASDAQ: TCOM). The duo is now offering joint customers preferential pricing services covering over 10,000 homestay locations. Because of all this, investors would be eyeing the top names in the industry now.
While the traditional in-person leisure companies are hard at work, newer frontiers in travel are also making headlines. Take the recent news around Jeff Bezos’ space tourism company, Blue Origin. The Amazon (NASDAQ: AMZN) CEO auctioned off a place on the company’s first spaceflight for $28 million over the weekend. Having read all of this, you might be keen to invest in the top leisure stocks yourself. If you are, here are three worth knowing in the stock market now.
Leisure Stocks To Buy [Or Sell] This Week
- Walt Disney Company (NYSE: DIS)
- MGM Resorts International (NYSE: MGM)
- United Airlines Holdings Inc. (NASDAQ: UAL)
Walt Disney Company
First up, we will be looking at the entertainment industry giant Disney. For the most part, few can boast a portfolio of leisure offerings as impressive as Disney’s. From its timeless classics to multi-billion-dollar pop culture IPs, the company would have plenty of streams of revenue now. Specifically, two key businesses are fueling the company’s growth pathway now. These are its tourism and streaming services respectively. Given the current momentum we are seeing in both divisions, investors could be eyeing DIS stock now. As it stands, DIS stock is currently trading above its pre-pandemic level.
Now, to understand the company’s long-term growth prospects, we would have to examine its current offerings. On one hand, Disney’s resorts and cruise experiences will likely benefit from the economy reopening. Whether it is the Disneyland experience or a Star Wars-based cruise voyage, the company has plenty to offer now. Accordingly, Disney’s operations continue to return towards pre-pandemic capacities while upholding new norms. Over the weekend, the company announced that it would be lifting indoor mask mandates for fully vaccinated guests. On the other hand, Disney’s streaming service, Disney + continues to dominate in the streaming space now. In just over 19 months since launch, the platform already boasts over 100 million paid subscribers. With management looking to more than double this figure by 2024, things do not appear to be slowing down anytime soon.
By and large, most would argue that Disney is firing on all cylinders right now. For one thing, its current media portfolio helped it spring back from its initial pandemic-related losses. With the addition of its conventional leisure services, DIS stock could have more room to run moving forward. Would you agree?
MGM Resorts International
Another name to know in the industry now would be MGM Resorts International. In brief, MGM is a global hospitality and entertainment company that operates out of Las Vegas, Nevada. Notably, MGM’s portfolio consists of 31 unique hotel and gaming destinations globally. Aside from that, the company also operates via its BetMGM online gaming arm. Through BetMGM, the company offers U.S. sports betting services that have and continue to gain momentum in the current digital age.
Similar to our previous entry, MGM was among the companies that were hit hard at the onslaught of the pandemic. However, thanks to its strategic shift towards the digital entertainment industry, the company appears to be on the uptrend now. Evidently, MGM stock is currently looking at gains of over 120% in the past year. Now, with its hospitality division looking at major travel tailwinds, investors may be wondering if MGM’s shares can still grow.
Well, for one thing, MGM has not been resting on its laurels lately. As of last week, the company is currently expanding its BetMGM sports betting app into the Washington, D.C. region. Notably, this will be done via a multi-year partnership with the Washington Nationals baseball team. Moreover, the company is now an authorized gaming operator for the Professional Fighters League, a mixed martial arts sports league. While MGM continues to bolster its increasingly popular gaming offerings, do you think MGM stock could return to its former glory?
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United Airlines Holdings Inc.
Following that, we have United Airlines Holdings Inc. (UAL). For the uninitiated, UAL operates a comprehensive global flight network. The likes of which consist of destinations across all seven continents in the world. Overall, given the company’s standing in the air travel industry, UAL stock would be a viable reopening play for investors. Now, the company’s shares are currently sitting on gains of over 35% year-to-date. While these gains are great, UAL stock is still trading below its pre-pandemic highs. Could this mean that it still has room to grow moving forward?
If anything, there has been no shortage of positive updates from the company. Last week, UAL told its over 40,000 employees that their jobs would remain safe even as federal aid for the industry expires. According to senior VP John Slater, this is mostly thanks to the “increase in customer demand” and UAL’s current outlook. Supporting these claims, the company also provided an update on airline ticket fares the week prior. Namely, UAL is currently seeing ticket prices rise towards 2019 levels, possibly signaling strong travel tailwinds now.
Not to mention, while operations appear to be lifting off, the company is still keen on expanding its services. This is apparent as UAL recently put in an order for 15 high-speed commercial aircraft from Boom Supersonic. In theory, this would offer flyers an alternative means to significantly shorten their travel times. With the company kicking into high gear now, will you be adding UAL stock to your portfolio?