Are These The Best Reopening Stocks To Add To Your Portfolio Right Now?
Chances are if you’ve been paying attention to the latest news on the market, you’ve read the term “reopening stocks”. As the name suggests, these are stocks that are positioned to benefit once the economy reopens after the pandemic. For the most part, this would be a sector to watch amidst the rapid distribution of vaccines now. Just yesterday, CNBC reported that tech-focused Satori Fund manager Dan Niles would also be shifting his attention towards reopening plays. With even large tech investors turning to the sector, we could see the top reopening stocks continue to rise.
For one thing, the travel industry is among the top reopening plays in focus now. Indeed, it would make sense to predict there being a boom in tourism activities post-pandemic. Accordingly, investors have already started flocking towards tourism-centered companies such as Carnival Corporation (NYSE: CCL) and Expedia (NASDAQ: EXPE). Both companies’ shares have more than tripled in value over the past year. With gains like this, could it be too late to jump on the reopening train now? Well, just yesterday, CNBC’s Jim Cramer reiterated the importance of repositioning as the eventual reopening of the economy puts pressure on tech stocks. If this has you keen on adding some reopening plays to your portfolio, here are four to consider adding to your portfolio right now.
4 Top Reopening Stocks To Buy [Or Sell] Now
- Winnebago Industries Inc. (NYSE: WGO)
- Tripadvisor Inc. (NASDAQ: TRIP)
- Walt Disney Company (NYSE: DIS)
- Hall of Fame Resort & Entertainment Company (NASDAQ: HOFV)
Winnebago Industries Inc.
First up, we have outdoor lifestyle company Winnebago Industries. In brief, it is a leading manufacturer of recreational vehicles (RVs) and motorboats in North America. Most would recognize its motorhome RVs that are also named after the company. Generally, consumers would rely on the company’s RVs for leisure travel and outdoor activities. With most international travel still on hold, local travel could be the go-to for consumers looking to satisfy their wanderlust now. That would be when Winnebago comes into play. Investors appear to think so as well, seeing as WGO stock has more than tripled over the past year. Given the company’s latest earnings release this morning, it would not surprise me to see WGO stock surge again.
Overall, Winnebago reported solid figures across the board in its second-quarter fiscal today. To begin with, the company posted a solid year-over-year increase of 34% in total revenue. This added up to quarterly revenue of $839.9 million. Investors would also be pleased to see that the company quadrupled its earnings per share year-over-year. Aside from all that, Winnebago also reported that interest in outdoor leisure activities remains high. The company cites elevated order backlogs and retail sales growth as evidence of this. Given all of this, would you consider WGO stock a buy now?
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Tripadvisor Inc.
Another top reopening play to watch now would be Tripadvisor. For the uninitiated, the company operates a leading global online travel platform. Through this platform, travelers from across the globe can browse a massive library of user-generated travel content. On top of that, users can also make online hotel reservations and other travel-related bookings. Understandably, Tripadvisor would be a prime candidate to benefit from countries reopening their borders to tourists. Even as the world gradually recovers from the pandemic, TRIP stock is already looking at year-to-date gains of over 80%.
Nevertheless, Tripadvisor has not been sitting idly by as well. Earlier today, it announced a collaboration with Reckitt, the makers of Lysol. The duo will be working together to provide Lysol sanitization kits to Tripadvisor’s nearly 8 million hospitality partners. No doubt, Tripadvisor appears to be preparing for the post-pandemic travel surge through this play. Not only would this help rebuild traveler confidence, but it would also incentivize partner hotels to improve overall cleanliness. Based on Tripadvisor’s estimates, 64% of U.S. travelers mentioned cleanliness as a top concern when making travel decisions. By and large, this is a win-win situation for all parties involved. Could this make TRIP stock worth investing in now? I’ll let you decide.
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Walt Disney Company
Following that is media giant Disney. Few can boast an entertainment portfolio as impressive as Disney’s. This would be the case given Disney’s massive collection of timeless classics, legendary IPs, and signature theme parks. Despite being hit hard at the onset of the pandemic, the company quickly adapted its offerings to fit the home streaming mold. As a result, the company’s Disney+ streaming services had a record year throughout 2020. Having crossed the 100 million subscriber mark in 16 months, many are comparing it to streaming giant Netflix (NASDAQ: NFLX). Coupled with the gradual reopening of its core theme parks, DIS stock could be a growth stock to watch now.
In general, Disney has been hard at work bolstering its services across the board this week. For starters, the company is reportedly testing out new facial recognition technology in its theme parks. This would help create a more contactless entry experience for customers amidst the current pandemic. In the long term, you could consider it a means of optimizing entrance services as well. Meanwhile, Disney also revealed that its latest blockbuster movies ‘Black Widow’ and ‘Cruella’ will be simultaneously released in theatres and on Disney+. The company is firing on all cylinders now, to say the least. To this end, will you be adding DIS stock to your portfolio?
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Hall of Fame Resort & Entertainment Company
Topping off our list today is Hall of Fame Resort & Entertainment Company (HOFV). As its name suggests, HOFV is a resort and entertainment company. Particularly, the draw of its offerings lies in the company’s partnerships with the Pro Football Hall of Fame. Of course, HOFV would stand to benefit from the resurgence in the tourism industry. But, that’s not why HOFV stock is on investors’ radars now. You have the trending non-fungible token (NFT) craze to thank for that. In fact, HOFV stock is currently up by over 56%, trading at $6.25 as of 12:57 p.m. ET.
In detail, HOFV announced a new partnership with entertainment marketing company, Dolphin Entertainment (NASDAQ: DLPN). The alliance in question will see Dolphin helping HOFV market its pro football NFTs. Why is this important? Well, the current hype around NFTs is thanks to the value it adds to digital assets. For instance, Twitter (NYSE: TWTR) and Square (NYSE: SQ) CEO Jack Dorsey just sold his first tweet as an NFT. He did so for over $2.9 million. Because NFTs are powered by blockchain tech, they are essentially one-of-a-kind digital collectibles, hence the immense value behind them. In theory, HOFV and Dolphin could do the same with HOFV’s collection of pro football memorabilia. Could this mean big gains for HOFV stock moving forward? Your guess is as good as mine.
