Are These Hotel Stocks A Good Buy During The COVID-19 Pandemic?
Hotel stocks have been in a rough place for many months. Most people stopped traveling contributing to hotels losing most of their business. This means financials are significantly low for hotel companies. Hotels need to make sure that consumers have a sense of safety when they start returning. Hotel stocks have been down but could they be back on the rise? As the world reopens more, hotels will start to see more visitors again.
It would be very impressive to see a full recovery for hotel stocks. Some hotel stocks have started to rise though. This is due to a slight increase in travelers and new hopes. Hotels will be implementing many things to make sure they are safe from the virus. This includes temperature checks and more.
While hotel stocks are volatile at the moment there can still be some good companies to invest in. Investors who bought the dip of some hotel stocks made a profit already. It’s time to look at two hotel stocks that have potential to cause momentum in the future. This is due to recent news about the hotel industry and more.
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This Hotel Stock Is Down, Could It Rise Back Up?
One hotel stock that has struggled due to the economic crisis is MGM Resorts International (MGM stock report). MGM is a hospitality and entertainment company that was founded in 1986. It owns many resorts and casinos across the United States. These places include Las Vegas, Detroit, Mississippi, Maryland, New Jersey, and more.
Shares of MGM stock fell around 78% when the economic crisis began. This was no surprise for investors as the hotel industry came to a standstill as soon as the virus spread. MGM stock price was around $32 a share before it all happened. At its low, MGM stock was trading around $7 a share. But MGM stock price has been back on the rise. As of June 25th shares of MGM stock are at $16.36 a share. This means that MGM stock price has begun to rise up. MGM stock is currently down from the $18 a share it was on the 23rd.
This could make MGM a potential hotel stock to buy. MGM stock could see an increase if the amount of customers goes up. Will MGM stock price be able to make a full comeback? That is unsure, but keep an eye on news for this hotel company. Things can change in an instant for MGM stock with just one press release.
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This Hotel Stock Has Potential In The Market
The next hotel stock to watch, Wynn Resorts Limited (WYNN stock report) is in a similar spot as MGM. Wynn Resorts was founded by Steve Wynn in 2002. The company focuses on high-end hotels and casinos. The Wynn and Encore hotels are the largest and second largest FTG five-star hotels in the world. The Wynn Palace is the third largest FTG five star rated hotel. Its two towers are impossible to not notice for visitors to Las Vegas.
WYNN stock price fell with many other hotel stocks in February to March. Shares of WYNN were at $133 a share before the fall. Once the economic crisis happened WYNN stock price went down to $43 a share. This is about a 67% decrease for WYNN stock. Since the fall, WYNN stock price has started to climb back up. On June 25th, WYNN stock price was $72.81 a share on average. This could potentially mean that WYNN stock is on the right path for recovery.
The hotel company announced it will be installing thermal cameras that can see the temperature of guests entering the resorts. This will add a sense of security for travelers looking to stay at one of Wynn Resorts’ properties.
The hotel industry is in a rough spot, which is no surprise to anyone. As travel begins to increase in the United States it could mean good things for MGM stock and WYNN stock. At the same time reports of a second wave of the virus could bring it back down. It is important to stay updated on everything going on with hotel stocks if you are looking to invest.