When the Covid-19 crisis swept in and disrupted the economy, savvy investors saw opportunity in travel stocks, banking on the resurgence of consumer demand once life returned to normal levels of activity.
What we now call “revenge travel” began as a fiery desire to break free from the confines of home and embark on the getaways that had been put on hold. This burning momentum for travel has transformed into a ‘reprioritization’ of life experiences, igniting a sustained spark in the travel industry.
The shift may have dulled the initial surge, but consumers have come to recognize the value of travel experiences, unleashing a fresh wave of expenditure.
For a daring leap into the travel investment landscape, here are some top travel stocks to consider:
Unleashing the Potential of Uber (UBER)
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Known primarily for its technological applications, Uber (NYSE:UBER) has revolutionized the sharing economy, disrupting the traditional taxi service and expanding into food delivery and shipping services. Its all-inclusive services make it a smart choice among travel stocks.
In the previous fiscal year, UBER missed earnings estimates only once, painting a promising picture for investors. Analysts predict an EPS of $1.23 on $39.71 billion revenue for the current fiscal year, surpassing the $0.80 EPS and $34.2 billion revenue from the last year.
Market experts unanimously rate UBER as a strong buy with a price target of $86.70. With a high-side target of $96, Uber presents an appealing opportunity in the travel stock arena.
Experiencing Success with Comcast (CMCSA)
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Comcast (NASDAQ:CMCSA), a media and technology titan, owns the NBCUniversal brand and oversees popular theme parks globally. As consumers gravitate towards vacation experiences, Comcast emerges as an intriguing player in the travel stocks realm.
Consistently surpassing earnings estimates in the past fiscal year, Comcast is poised for continued success with an EPS forecast of $4.24 on $124.28 billion revenue this year, extending from $3.98 EPS and $121.57 billion revenue in 2023.
With a projected rise in EPS to $4.62 in 2025 and a high-side revenue estimate of $128 billion, Comcast garners a moderate buy consensus with an average price target of $51.92 and a bullish target of $57.
Wynn Resorts (WYNN): A Sure Bet in Travel Stocks
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Wynn Resorts (NASDAQ:WYNN) stands out as a premier choice among travel stocks, operating through various segments such as Wynn Palace, Wynn Macau, Las Vegas Operations, and Encore Boston Harbor. With a 5% stock growth since the beginning of the year, WYNN exudes promise.
Having delivered strong earnings in the past fiscal year, Wynn Resorts is anticipated to continue its winning streak in 2024. Notably, the company posted an impressive EPS of 29 cents against an expected
Financial Giants Defy Odds
Wyndham Hotels & Resorts (WH)
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A hotel franchisor with a worldwide presence, Wyndham Hotels & Resorts (NYSE:WH) has shown resilience in the face of adversity, akin to a sturdy oak in a raging storm. With divisions in Hotel Franchising and Hotel Management, the company licenses its renowned lodging brands to third-party hotel owners while providing a comprehensive suite of services to support international managed business ventures.
Despite not dazzling with record-breaking financial figures, Wyndham has captivated investors with its unwavering stability throughout the past year, resembling a trusted compass guiding sailors through tumultuous seas. In fiscal 2023, the company surpassed earnings per share projections, resulting in an average positive earnings surprise of 3.9%.
For the ongoing fiscal year, market analysts predict that Wyndham will achieve an average EPS of $4.24 alongside revenue totaling $1.46 billion. Furthermore, the most optimistic forecast anticipates EPS of $4.38 with revenue reaching $1.52 billion. In comparison, the previous year witnessed Wyndham generating per-share profits of $4.01 on revenue amounting to $1.4 billion.
Analysts have bestowed a consensus moderate buy rating upon WYNN, with a target price averaging $116.82. The upper echelon of forecasts aims for a soaring $135 level. Investors await Wyndham’s next steps in the market with bated breath, hopeful for a trajectory akin to a steady, reliable locomotive chugging along a well-worn track.
Carnival (CCL)
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Standing tall as a stalwart in the travel sector, Carnival (NYSE:CCL) bounces back with aplomb following the tumultuous shadow cast by Covid-19, akin to a phoenix rising from its ashes. Offering travel services across the globe, Carnival operates through various segments, including NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other, demonstrating a multi-faceted approach to success.
Despite facing unprecedented challenges last year, Carnival showcased its mettle by outperforming expectations, such as mitigating a projected loss of 13 cents per share to a lesser 7 cents in fiscal Q4. In Q3, the company stunned with an EPS of 86 cents, surpassing the consensus estimate of 75 cents. Overall, Carnival posted an average earnings surprise of 19.5% for the year.
As the current fiscal year unfolds, industry experts foresee Carnival achieving an EPS of $1.01 alongside revenues totaling $24.69 billion. Moreover, the most optimistic outlook predicts EPS of $1.20 on a revenue scale slightly exceeding $25 billion. In the prior year, Carnival broke even in per-share profits, recording revenue figures of $21.59 billion.
Market analysts have assigned a moderate buy rating to CCL, with an average price target of $19.73. Carnival enthusiasts eagerly anticipate the company’s trajectory, much like spectators at a thrilling circus performance, eager for the renowned tightrope walker to reach the pinnacle of success.
United Airlines (UAL)
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An aviation heavyweight, United Airlines (NASDAQ:UAL) arises as a premier choice among air-travel enthusiasts, akin to a soaring eagle navigating the boundless skies. Specializing in air transport for passengers and cargo via its extensive fleet, United offers ancillary services, including catering, ground handling, flight academy training, and maintenance solutions for third-party clients.
Despite a challenging environment for the aviation sector, United defied expectations in critical moments last year, akin to a skilled pilot expertly navigating through turbulent weather. In the prior fiscal year, the company exceeded analysts’ anticipated earnings figures or, in the case of Q1, mitigated expected losses per share, culminating in an impressive performance overall.
Exploring Intriguing Investment Opportunities in United Airlines (UAL) and Dine Brands (DIN)
The Soaring Prospects of United Airlines (UAL)
United Airlines (NYSE: UAL) has been flying high amidst a tumultuous economic environment, with the carrier embracing turbulence as vitality. The average surprise for the last four quarters landed impressively at 16.45%, defying gravity and soaring past expectations. Analysts’ crystal ball reflects a promising fiscal year for United, forecasting EPS figures of $9.51 on the wings of sales amounting to $57.25 billion.
The high-side estimation flirts with the clouds, envisioning an EPS altitude of $10.39 on the back of sales soaring to $58.6 billion. Comparing these figures to 2023, where the company reported per-share profits of $10.05 and a top line of $53.72 billion, it is evident that United Airlines has charted a growth trajectory akin to a plane climbing steadily to reach higher skies.
The investment atmosphere surrounding UAL is cloaked in a moderate buy consensus, with a beacon price target of $58.93 illuminating the potential runway ahead. For opportunistic investors looking to navigate the travel sector, United Airlines emerges as a beacon of hope among the clouds.
The Appetizing Prospect of Dine Brands (DIN)
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An intriguing opportunity awaits in the domain of travel stocks to purchase in Dine Brands (NYSE: DIN). This culinary juggernaut owns, franchises, and operates restaurants domestically and internationally. Its portfolio spans six distinct segments, including the renowned Applebee’s and International House of Pancakes (IHOP), evoking nostalgia and offering a taste of familiarity in turbulent times.
The past 52 weeks have seen DIN stock weather a storm of sorts, experiencing a 31% erosion in equity value. Despite the overarching challenges faced by the restaurant industry, with discretionary consumer spending taking a hit, there lies a silver lining within the dining domain.
Why set your sights on DIN stock, you may wonder? Delving into the fundamentals, the belief that travelers will seek solace in saving while traversing new destinations positions the value-centric appeal of Applebee’s and IHOP in a favorable light.
Add to this the impressive track record of beating earnings expectations in the previous four quarters, with an average positive surprise of 16.65%, and you have a compelling recipe for success amidst sector-wide headwinds. Looking ahead, analysts predict an EPS trajectory aiming for $6.51 this fiscal year, supported by sales totaling $843.23 million.
Last year’s performance echoes a similar tune, with EPS figures hitting $6.65 against a backdrop of $831.07 million in sales. Dine Brands shines brightly with a strong buy rating and a north-facing $60.60 price target, offering a tantalizing 31% upside potential for savvy market participants eager to spice up their portfolios.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
