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The Zacks Analyst Blog Highlights Marriott International, Choice Hotels International, Malibu Boats and Bluegreen Vacations

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For Immediate Release

Chicago, IL – June 14, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Marriott International, Inc. (MAR - Free Report) , Choice Hotels International, Inc. (CHH - Free Report) , Malibu Boats, Inc. (MBUU - Free Report) and Bluegreen Vacations Holding Corp. .

Here are highlights from Monday’s Analyst Blog:

4 Solid Stocks to Buy as America Gears Up for Summer Holidays

Americans are excited and have no plans to cancel or postpone their holidays this summer despite soaring hotel room rent and airfare. The COVID-19 pandemic had brought the travel and tourism industry to almost a halt over the past two years.

However, things are looking brighter and an increasing number of Americans are planning summer holidays this year. This is likely to finally give a boost to the travel and leisure industry, which has been trying hard to get back on its feet. Thus, stocks like Marriott International, Inc., Choice Hotels International, Inc., Malibu Boats, Inc. and Bluegreen Vacations Holding Corp. are likely to benefit in the near term.

High Costs Less Likely to Dampen Travel Plans                    

The majority of Americans are vaccinated and the government is further easing restrictions ahead of the summer break. This is all being done as predictions are that more people plan to travel this summer holiday.

According to a new report from Deloitte, 46% Americans plan to stay in hotels or other forms of paid lodgings this summer when they go on holiday. Among those who plan to go on holiday, the majority are young Americans. However, many above 55, who were till sometime back hesitant about traveling, as the pandemic is far from over, are also making holiday plans.

Interestingly, people are also willing to spend more. Rising costs have been a cause of concern but people don't seem to mind that. According to the survey, three out of 10 travelers are even willing to spend more than what they did in 2019, or before the pandemic struck.

A separate poll by CarTrawler.com shows that people are in no mood to drop their vacation plans despite higher airfares and hotel room rents. According to the poll, 73% of Americans feel "positive" about holidaying this summer. This means 73% of the people plan to fly somewhere.

Yet another poll by World Nomads shows that 41% of Americans say nothing can stop them from holidaying this summer.

Domestic Travel Preferred on Higher Oversees Airfare

Most of the polls show that people this time are preferring domestic destinations. According to Deloitte, U.S.-based properties will attract most of the travel spend this summer, as only 15% of Americans plan to go holidaying at an international destination.

This is likely because of higher international airfares and unpredictable entry and exit restrictions. Of those traveling within the United States, 67% plan to stay at hotels, while 16% are planning other rental stays.

According to CarTrawler.com., 51% of those traveling plan to do domestic leisure travel.

The COVID-19 pandemic almost crippled the travel and leisure sector as tough restrictions were imposed on travel during the initial months following the outbreak. Although people started getting vaccinated in early 2021, it took longer for the economy to reopen as multiple variants of the coronavirus disrupted traveling.

Also, many people were initially skeptical about traveling despite being vaccinated as they feared contracting the virus.

However, they are a lot more confident now and are desperate to go on vacations after staying home for two years. Hence, higher airfares and room rents aren't a factor anymore as people are ready to shell out a few extra bucks this time around.

Our Choices 

This would be an opportune time to invest in stocks that are likely to benefit from the travel boom. We have handpicked four such stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Marriott International, Inc. is a leading worldwide hospitality company focused on lodging management and franchising, after the spin-off of its timeshare business into a publicly-traded company in November 2011. MAR's classic premium hotel brands include Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, and Marriott Vacation Club. Moreover, its distinctive premium hotel brands comprise Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio and Design Hotels.

Marriott International's expected earnings growth rate for the current year is 87.2%. The Zacks Consensus Estimate for current-year earnings has improved 8.2% over the past 60 days. MAR sports a Zacks Rank #1.

Choice Hotels International, Inc. is one of the largest hotel franchisors globally. As of Mar 31, 2022, CHH had 6,996 hotels open, representing nearly 577,714 rooms. Choice Hotels International operates across 40 countries and territories internationally and is present in 50 states domestically and the District of Columbia.

Choice Hotels International's expected earnings growth rate for the current year is 16.3%. The Zacks Consensus Estimate for current-year earnings has improved 2.9% over the past 60 days. CHH has a Zacks Rank #2.

Malibu Boats, Inc. operates as a designer, manufacturer and marketer of sport boats primarily in the United States. MBUU sells its boats under two brands: Malibu and Axis Wake Research. Its boats are used for water sports like water skiing, wakeboarding and wake surfing as well as for general recreational.

Malibu Boats' expected earnings growth rate for the current year is 29.6%. The Zacks Consensus Estimate for current-year earnings has improved 10% over the past 60 days. MBUU carries a Zacks Rank #1.

Bluegreen Vacations Holding Corporation operates as a vacation ownership company. BVH markets and sells vacation ownership interests and manages resorts in leisure and urban destinations. Bluegreen Vacations Holding Corporation is based in Fort Lauderdale, FL.

Bluegreen Vacations Holding Corporation's expected earnings growth rate for the current year is 35.1%. The Zacks Consensus Estimate for current-year earnings has improved 11.9% over the past 60 days. BVH carries a Zacks Rank #2.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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