3 Trending Travel Stocks To Watch In The Stock Market Now
Travel stocks are gaining traction in the stock market today as the U.S. reopens its borders to overseas travelers. Namely, the almost 20-month long international travel ban will be lifted today and travel companies stand to benefit from that. In detail, fully vaccinated tourists from over 30 countries can now fly into the U.S. Safe to say, this marks a major win for the tourism industry as a whole. Whether it is airline operators, hospitality firms, or even travel agencies, this is apparent. To highlight, the industry has and continues to see a surge in bookings since the announcement regarding this move.
For example, both Airbnb (NASDAQ: ABNB) and Expedia Group (NASDAQ: EXPE) have been surging in the stock market recently. Over the past month, both companies’ shares are up by over 18% and 7% respectively. On one hand, Airbnb CEO Brian Chesky recently highlighted that the company’s homestay bookings surged since President Biden broke the news. Within the same week, Airbnb’s bookings for stays after November 9 jumped by 44%.
On the other hand, Expedia wowed investors across the board in its latest quarterly earnings call last week. In it, the travel metasearch giant posted an earnings per share of $3.53 on revenue of $2.96 billion. This smashed analyst projections of $1.65 and $2.73 billion respectively. Furthermore, EXPE stock also received price upgrades from Wedbush and Credit Suisse (NYSE: CS) analysts on Friday. As a result of all this, the company’s shares soared by over 15% during Friday’s intraday trading. Evidently, consumer demand for travel continues to grow, and travel companies are more than happy to cater to said demand. On that note, could one of these travel stocks be top buys this week?
Top Travel Stocks To Watch Now
Delta Air Lines
Starting us off today is Delta Air Lines. In brief, Delta is one of the leading names in the global airline industry today. For a sense of scale, the company’s pre-pandemic operations facilitated over 5,000 daily flights, serving over 200 million people annually. Its flight network spans 300 destinations in over 50 countries worldwide. Given Delta’s presence in the commercial flight market today, DAL stock could be worth keeping an eye on now.
For one thing, the company’s shares gained by over 9% throughout last week. This could be on account of Delta’s latest update on its operations. Diving right in, Delta’s international bookings are reportedly surging by 450% since the U.S. announced plans to ease travel restrictions. At the same time, the company appears to be keen on making the most of this travel boom. According to Delta, its international flights are going to operate at full capacity starting today. The likes of which include 139 flights from 55 international destinations in 38 countries, totaling more than 25,000 seats.
Overall, we could be looking at exciting times ahead for Delta. Starting today, the company will be able to serve travelers from China, India, Brazil, and parts of Europe. Given the massive expansion of its addressable markets, investors could be eyeing DAL stock in the stock market this week. All things considered, will you be adding it to your list of top travel stocks to buy now?
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Another name to consider among travel stocks now would be Tripadvisor. As the name suggests, the company provides users with travel planning resources. For the most part, Tripadvisor operates via its proprietary website and mobile app. Through these portals, consumers have access to user-generated content and comparison shopping metasearch services. Additionally, Tripadvisor also offers online hotel reservations alongside other travel-related bookings such as restaurants and transportation. With year-to-date gains of over 20%, could TRIP stock be a good buy now?
While that remains to be seen, Tripadvisor remains hard at work. Sure, the company would stand to benefit from an uptick in international travelers into the U.S. Even so, Tripadvisor seems to be targeting overseas markets as well. As of last week, the company is now looking to collaborate with Atout France, France’s national tourism development agency. Through a letter of intent to engage, Tripadvisor is suggesting an over $2.69 million deal with Atout. Should things go as planned, the duo will leverage Tripadvisor’s travel data solutions to promote French tourism on its platform.
If anything, Atout appears to be interested in the current deal already. Atout CEO Caroline Leboucher said, “Collaborating with Tripadvisor will give us unparalleled exposure and international reach to generate demand and excite a global community of travelers to return to France.” Leboucher cites Tripadvisors’ comprehensive data and “expert consultation” as core benefits of the deal. With the company gaining momentum in both domestic and international markets, will you be investing in TRIP stock?
Last but not least, we will be taking a look at mass media goliath Disney. Given Disney’s extensive tourism-based offerings, DIS stock could be a go-to for investors looking to bet on U.S. travel trends. After all, tourism was among the company’s core revenue streams pre-pandemic. This alongside its immensely popular Disney+ video streaming service could see the company firing on all cylinders now. As such, it would not surprise me to see investors watching DIS stock this week.
For the uninitiated, Disney’s current travel-related services range from its Disneyland theme parks to themed cruises. With the company’s global presence via its massive media portfolio, international tourists could, arguably, consider its holiday experiences. Moreover, the company’s latest blockbuster film, Eternals, recently hit cinemas, raking in $161.7 million globally on its opening weekend. This would make it the second-highest global weekend posted by a Motion Picture Association film this year. With the movie yet to release in China, one of the highest-grossing international box offices, Disney could still have room to run on this front.
Not to mention, the company will be posting its latest quarterly figures later this week after Wednesday’s closing bell. Now, consensus estimates suggest that Disney could post an earnings per share of $0.44 on revenue of $16.3 billion. Should this be the case, it would mark year-over-year gains of 110% and 10% respectively. From its streaming platform to its tourist attractions, Disney brings plenty to the table now. With all that said, would you consider adding DIS stock to your portfolio?