Talk about pent-up demand. Travel, whether for business or pleasure, has been reduced by almost an inch of their life over the past year. But times are changing.
Nationally, travel is normalizing again. People are ready to stay in hotels and resorts again. Crowds are no longer something to fear. People can mix with people again.
And that’s going to be a big boost for travel stocks. Many stocks have already registered big gains in anticipation. But some are consolidating, waiting for the numbers to reflect their anticipated growth.
While some high-margin business trips may be the last to come back online due to teleconferencing and decentralized workspaces, school is over again this year and families are ready to hit the road.
The seven trips I have chosen here are the fittest to really enjoy the return of summer trips:
- Boyd Gaming (NYSE:BYD)
- Bally’s (NYSE:BALY)
- Canterbury Park (NASDAQ:CPHC)
- Vail Resorts (NYSE:MTN)
- Penn National Gaming (NASDAQ:PENN)
- Travel + Leisure (NYSE:TNL)
- Southwest Airlines (NYSE:LUV)
Travel Stocks to Buy: Boyd Gaming (BYD)
Source: Maridav / Shutterstock, Inc.
Despite having a market cap of $ 7 billion, BYD probably isn’t a name that many people recognize as a Vegas brand, or even a national gambling resort brand. But BYD owns 28 gambling properties in 10 states, with 11 hotels and casinos in Las Vegas.
This means people don’t have to travel far to visit one of BYD’s properties. With resorts and casinos from Pennsylvania to Louisiana to Missouri, people who have played in the markets for the first time are likely to return to the tables.
Like most travel stocks here, BYD had a big run last year, but it’s up 52% ​​year-to-date, so investors expect significant profit growth over the course of the year. of the year. It might sound a bit pricey, but it’s in a good position to promote growth.
Portfolio grader note: A
Bally’s (BALY)
Source: Ceri Breeze / Shutterstock.com
While BALY owns some of Las Vegas’ most iconic properties, it also owns properties across the United States, as well as digital sports books in the States.
In the age of mobility, digital betting was very useful when casinos and resorts were closed. And it helped generate working capital as properties reopened to limited capacity.
But now everything is back to normal and BALY is one of those travel documents that investors see as an indicator for the gaming industry. In April, it announced that it was issuing an additional $ 600 million in shares. , which reduced the stock’s performance this year. And a shortfall announced earlier this month has also kept BYD stock growth at around 16% year-to-date.
Now is the right time to take advantage of a discount.
Portfolio grader category B
Travel Inventory to Buy: Canterbury Park (CPHC)
Source: Olga_i via shutterstock
If you’ve been lucky enough to see the Kentucky Derby or the Preakness this year, you know face-to-face horse racing is back. CPHC not only has a runway outside of the Twin Cities in Minnesota, it also has a casino.
While the summer heat in Las Vegas attracts many, there are others who prefer the cooler temperatures of Minnesota. Of course, CPHC also offers off track betting and digital games.
With a market cap of $ 66 million, this is a small stock, so it’s going to experience some volatility as institutional investors stay away from companies of this size. But the stock is up 19% year-to-date and is already posting strong earnings.
Portfolio grader category B
Vail Resorts (MTN)
Source: Shutterstock
However, there is more to travel inventory than just resorts. And MTN is proof of that.
Keep in mind that MTN isn’t just a mountain in a Colorado ski town. It operates 37 alpine resorts in three countries. And a lot of them are all over the United States
Sure, winter hasn’t been pleasant this year, but over the years ski resorts have become 4-season destinations with plenty to do when the skiing stops. And the resorts are in great locations, so they’re great destinations too.
Up 23% year-to-date, there’s a lot of value in this neglected travel stock.
Portfolio filing cabinet category B
Travel Stocks to Buy: Penn National Gaming (PENN)
Source: Casimiro PT / Shutterstock.com
If you’ve ever been to a Hollywood casino then you’ve been to a PENN place. The company has 43 casinos and racetracks in the United States and Canada.
Although most of her properties are in cities across the United States, in recent years she has purchased a few properties from BALY, including the famous Tropicana.
PENN also holds a significant position in Bar Stool Sports, a popular media organization. It has opened a mobile betting app that is currently available in Pennsylvania and plans to expand its base. This is an increasingly important industry for travel inventories like these because these revenues are reliable and high margin.
The stock has been stable since the start of the year as it consolidates from the big rally last year. Now is the right time to intervene.
Portfolio grader category B
Travel + Leisure (TNL)
Source: Shutterstock
Although many people recognize the name of its magazine cover, TNL is actually one of the major travel companies. It currently defines itself as a leisure and membership travel company, with a portfolio of nearly 20 resort, travel club and lifestyle travel brands.
Given its reputation as a smart package travel companion, it makes perfect sense to create its own travel brands and deliver unique experiences to high-end consumers. This is also a very good demographic to own, as they tend to have more price elasticity which favors margins.
With a market cap of $ 5 billion, it is not a powerhouse in the travel industry, but its unique position is its value. TNL stock is up 47% year-to-date after beating first-quarter estimates in late April.
It’s going well now and when international travel opens up it’s going to shine.
Portfolio grader category B
Travel Stocks to Buy: Southwest Airlines (LUV)
Source: Carlos E. Santa Maria / Shutterstock.com
Airline stocks may be the best indicator of the performance of travel stocks as a whole, because the more people who fly, the more people who travel.
Granted, there are other ways to travel, but the United States is a big country and the plane gets you where you want to go quickly. If the United States had a month-long vacation like in Europe, long car and train trips could steal market share. But for now, planes are winning.
And LUV has built its reputation on being a low cost, quality people carrier that covers the US markets as well as the Caribbean. It cut costs by opening routes to secondary airports with lower boarding costs than the main ones. His ticker is for Love Field in Dallas, where he started his operations. Love was an alternative to the massive Dallas-Fort Worth airport where the major airlines dominated the gates.
Over the years it has become a big player in the industry as it keeps a close eye on nickel free efficiency and obscures its customers with fees.
The stock is up 37% year-to-date and is expected to grow rapidly.
Portfolio grader category B
As of the publication date, Louis Navellier has no position on the actions of this article. Louis Navellier had (neither directly nor indirectly) other positions in the securities mentioned in this article.
The InvestorPlace research staff member primarily responsible for this article did not hold (directly or indirectly) any position in any of the securities mentioned in this article.
The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publication guidelines.
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