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5 Stocks to Buy as Traveling Gains Momentum This Year
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Americans have finally started traveling after remaining confined to their homes for over a year. With more people getting vaccinated and restrictions getting lifted, people are more confident and are hitting the roads.
Also, business trips and in-person conferences are making a comeback in the United States faster than expected. Thus, airline companies, hotels and restaurants and many others linked to the leisure and entertainment industry are getting busy after more than a year.
Traveling Picking Up
An increasing number of Americans are planning trips this year, with restrictions being eased. Both international and domestic travel had almost come to a standstill following the coronavirus outbreak. However, people are now aggressively hitting the road, making revenge traveling one of the key factors this year.
Although there are still some restrictions on international tourism, domestic travel is on the rise. According to a study by AirDNA, demand for Airbnb and VRBO traveling is gaining momentum, with booking for small cities and rural areas up 62% from summer 2019. Also, there is a 24% rise in demand for short-term vacation rentals in the United States since 2019.
Air Travel on the Rise
Air traffic is also rebounding at a fast pace with many planning holidays this summer. In fact, air traffic volume is also at its highest level since the COVID-19 outbreak. Presently, 2 million people are flying every day compared to 2.7 million on the same travel days back in 2019.
Also, many are traveling by road to maintain social distance. Business trips that include in-person conference are once again on the rise. According to JPMorgan Chase and Co (JPM), business travel is fast rising and is running at 30% to 35% of the pre-pandemic levels.
Then again, many are still not totally confident and are choosing safer destinations like wine yards, farms or national parks to maintain social distance. This has seen huge demand for recreational vehicles (RV) and yachts. The RV Industry Association estimates total RV shipments in 2021 to jump 33.8% from last year.
Hilton Worldwide Holdings Inc. (HLT - Free Report) is a hospitality company that owns, leases, manages, develops and franchises hotels and resorts. As of Mar 31, 2021, Hilton's development pipeline comprised more than 2,570 hotels, with nearly 399,000 rooms across 114 countries and territories — including 31 countries and territories where it currently does not have any running hotels.
The company’s expected earnings growth rate for the current year is more than 100%.The Zacks Consensus Estimate for current-year earnings has improved 9.4% over the past 60 days. Hilton Worldwide carries a Zacks Rank #2 (Buy).
YETI Holdings, Inc. (YETI - Free Report) designs, markets and distributes products for the outdoor and recreation market under the YETI brand primarily in the United States. The company's products are designed for use in outdoor activities, including hunting, fishing, camping, barbecue, and farm and ranch activities among others.
The company’s expected earnings growth rate for the current year is 26.2%. The Zacks Consensus Estimate for current-year earnings has improved 9.3% over the past 60 days. The company has a Zacks Rank #1.
Mastercraft Boat Holdings, Inc. (MCFT - Free Report) designs, manufactures and markets recreational powerboats through its subsidiaries. The company's operating segment consists of MasterCraft and NauticStar.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 18.6% over the past 60 days. Mastercraft Boat carries a Zacks Rank #2.
Brunswick Corporation (BC - Free Report) endeavors to instill Genuine Ingenuity in all its leading consumer brands, including Mercury and Mariner outboard engines, Mercury MerCruiser sterndrives, and inboard engines.
The company’s expected earnings growth rate for the current year is 49.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the past 60 days. Brunswick Corporation carries a Zacks Rank #2.
Camping World Holdings Inc. (CWH - Free Report) is a provider of services, protection plans, products and resources for recreational vehicle enthusiasts.
The company’s expected earnings growth rate for the current year is 54.1%. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the past 60 days. Camping World Holdingscarries a Zacks Rank #2.
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5 Stocks to Buy as Traveling Gains Momentum This Year
Americans have finally started traveling after remaining confined to their homes for over a year. With more people getting vaccinated and restrictions getting lifted, people are more confident and are hitting the roads.
Also, business trips and in-person conferences are making a comeback in the United States faster than expected. Thus, airline companies, hotels and restaurants and many others linked to the leisure and entertainment industry are getting busy after more than a year.
Traveling Picking Up
An increasing number of Americans are planning trips this year, with restrictions being eased. Both international and domestic travel had almost come to a standstill following the coronavirus outbreak. However, people are now aggressively hitting the road, making revenge traveling one of the key factors this year.
Although there are still some restrictions on international tourism, domestic travel is on the rise. According to a study by AirDNA, demand for Airbnb and VRBO traveling is gaining momentum, with booking for small cities and rural areas up 62% from summer 2019. Also, there is a 24% rise in demand for short-term vacation rentals in the United States since 2019.
Air Travel on the Rise
Air traffic is also rebounding at a fast pace with many planning holidays this summer. In fact, air traffic volume is also at its highest level since the COVID-19 outbreak. Presently, 2 million people are flying every day compared to 2.7 million on the same travel days back in 2019.
Also, many are traveling by road to maintain social distance. Business trips that include in-person conference are once again on the rise. According to JPMorgan Chase and Co (JPM), business travel is fast rising and is running at 30% to 35% of the pre-pandemic levels.
Then again, many are still not totally confident and are choosing safer destinations like wine yards, farms or national parks to maintain social distance. This has seen huge demand for recreational vehicles (RV) and yachts. The RV Industry Association estimates total RV shipments in 2021 to jump 33.8% from last year.
Our Choices
We have picked five stocks with a Zacks Rank #1 (Strong Buy) or 2 (Buy) that are poised to benefit in the near term. You can see the complete list of today’s Zacks #1 Rank stocks here.
Hilton Worldwide Holdings Inc. (HLT - Free Report) is a hospitality company that owns, leases, manages, develops and franchises hotels and resorts. As of Mar 31, 2021, Hilton's development pipeline comprised more than 2,570 hotels, with nearly 399,000 rooms across 114 countries and territories — including 31 countries and territories where it currently does not have any running hotels.
The company’s expected earnings growth rate for the current year is more than 100%.The Zacks Consensus Estimate for current-year earnings has improved 9.4% over the past 60 days. Hilton Worldwide carries a Zacks Rank #2 (Buy).
YETI Holdings, Inc. (YETI - Free Report) designs, markets and distributes products for the outdoor and recreation market under the YETI brand primarily in the United States. The company's products are designed for use in outdoor activities, including hunting, fishing, camping, barbecue, and farm and ranch activities among others.
The company’s expected earnings growth rate for the current year is 26.2%. The Zacks Consensus Estimate for current-year earnings has improved 9.3% over the past 60 days. The company has a Zacks Rank #1.
Mastercraft Boat Holdings, Inc. (MCFT - Free Report) designs, manufactures and markets recreational powerboats through its subsidiaries. The company's operating segment consists of MasterCraft and NauticStar.
The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 18.6% over the past 60 days. Mastercraft Boat carries a Zacks Rank #2.
Brunswick Corporation (BC - Free Report) endeavors to instill Genuine Ingenuity in all its leading consumer brands, including Mercury and Mariner outboard engines, Mercury MerCruiser sterndrives, and inboard engines.
The company’s expected earnings growth rate for the current year is 49.9%. The Zacks Consensus Estimate for current-year earnings has improved 1.7% over the past 60 days. Brunswick Corporation carries a Zacks Rank #2.
Camping World Holdings Inc. (CWH - Free Report) is a provider of services, protection plans, products and resources for recreational vehicle enthusiasts.
The company’s expected earnings growth rate for the current year is 54.1%. The Zacks Consensus Estimate for current-year earnings has improved 6.8% over the past 60 days. Camping World Holdingscarries a Zacks Rank #2.