We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gasoline Prices Take a Dive: A Boon for Drivers and Investors
Read MoreHide Full Article
Gasoline prices across the United States have continued their downward trend, providing a welcome relief to American drivers and potentially impacting various sectors of the economy. Lower prices at the pump have not only put a lighter dent in travelers' wallets but also could benefit travel/transportation stocks like Hilton Worldwide Holdings (HLT - Free Report) , Marriot Vacations Worldwide (VAC - Free Report) and Old Dominion Freight Line (ODFL - Free Report) .
In Boise, ID, for example, the average gasoline price has dropped to $3.60 per gallon, marking a 26-cent decrease in just one month and a notable decline of 53 cents per gallon from a year ago. This marks the 10th consecutive week of declining gasoline prices, according to fuel tracking service GasBuddy, setting the stage for a more affordable holiday season for motorists.
Gasoline Prices Could Drop Throughout Holiday Season
The decline in gasoline prices isn't limited to a particular state. In South Carolina, the average price per gallon recently reached $2.88. This is 16.2 cents lower than a month ago and 20.6 cents below the prices seen a year ago. The trend extends across the country, with the national average for both unleaded and diesel gasoline falling. Diesel gasoline is now priced at $4.23 per gallon, while the national average for unleaded stands at $3.21 per gallon.
As a matter of fact, this Thanksgiving, American drivers experienced the lowest gasoline prices since 2020, with the national average hitting $3.27 per gallon. The decline is attributed to a combination of weakening oil prices and reduced demand for gasoline, supplies of which are currently 2% below the five-year average range.
Savings at Pump Presents Opportunities for Investors
Post Thanksgiving, too, gasoline prices have continued their downtrend and have now seen an unprecedented 60 consecutive days of decline, reaching an average of $3.25 per gallon in the United States. This trend, the longest in over a year, doesn't appear to be going away anytime soon.
For investors, the declining gasoline prices present an interesting landscape. As gasoline prices fall, consumers may find themselves with more disposable income, potentially leading to increased spending in other areas of the economy.
Among others, companies involved in travel/leisure, like Hilton Worldwide Holdings and Marriot Vacations Worldwide, are set to benefit from lower gas prices, especially during the crucial holiday season.
Founded in 1919 and headquartered in McLean, VA, Hilton Worldwide Holdings is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. The Zacks Rank #2 (Buy) firm boasts an award-winning guest loyalty program known as Hilton Honors.
As far as Marriot is concerned, it is headquartered in Orlando, FL. The Zacks Rank #3 (Hold) VAC markets and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands, The Ritz-Carlton Destination Club brand and The Ritz-Carlton Residences brand.
Additionally, lower fuel costs may positively impact transportation and logistics companies, contributing to improved profit margins. A case in point is Old Dominion Freight Line. The #3 Ranked company services on a regional, inter-regional and national basis. The services are inclusive of ground and air expedited transportation, apart from consumer household pickup and delivery through a single integrated organization.
Last Words
In conclusion, the sustained decline in gasoline prices presents a mixed bag of opportunities and challenges for investors. While consumers enjoy savings at the pump, investors should carefully consider the potential impacts on different sectors of the economy.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Gasoline Prices Take a Dive: A Boon for Drivers and Investors
Gasoline prices across the United States have continued their downward trend, providing a welcome relief to American drivers and potentially impacting various sectors of the economy. Lower prices at the pump have not only put a lighter dent in travelers' wallets but also could benefit travel/transportation stocks like Hilton Worldwide Holdings (HLT - Free Report) , Marriot Vacations Worldwide (VAC - Free Report) and Old Dominion Freight Line (ODFL - Free Report) .
In Boise, ID, for example, the average gasoline price has dropped to $3.60 per gallon, marking a 26-cent decrease in just one month and a notable decline of 53 cents per gallon from a year ago. This marks the 10th consecutive week of declining gasoline prices, according to fuel tracking service GasBuddy, setting the stage for a more affordable holiday season for motorists.
Gasoline Prices Could Drop Throughout Holiday Season
The decline in gasoline prices isn't limited to a particular state. In South Carolina, the average price per gallon recently reached $2.88. This is 16.2 cents lower than a month ago and 20.6 cents below the prices seen a year ago. The trend extends across the country, with the national average for both unleaded and diesel gasoline falling. Diesel gasoline is now priced at $4.23 per gallon, while the national average for unleaded stands at $3.21 per gallon.
As a matter of fact, this Thanksgiving, American drivers experienced the lowest gasoline prices since 2020, with the national average hitting $3.27 per gallon. The decline is attributed to a combination of weakening oil prices and reduced demand for gasoline, supplies of which are currently 2% below the five-year average range.
Savings at Pump Presents Opportunities for Investors
Post Thanksgiving, too, gasoline prices have continued their downtrend and have now seen an unprecedented 60 consecutive days of decline, reaching an average of $3.25 per gallon in the United States. This trend, the longest in over a year, doesn't appear to be going away anytime soon.
For investors, the declining gasoline prices present an interesting landscape. As gasoline prices fall, consumers may find themselves with more disposable income, potentially leading to increased spending in other areas of the economy.
Among others, companies involved in travel/leisure, like Hilton Worldwide Holdings and Marriot Vacations Worldwide, are set to benefit from lower gas prices, especially during the crucial holiday season.
Founded in 1919 and headquartered in McLean, VA, Hilton Worldwide Holdings is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. The Zacks Rank #2 (Buy) firm boasts an award-winning guest loyalty program known as Hilton Honors.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
As far as Marriot is concerned, it is headquartered in Orlando, FL. The Zacks Rank #3 (Hold) VAC markets and manages vacation ownership and related products under the Marriott Vacation Club and Grand Residences by Marriott brands, The Ritz-Carlton Destination Club brand and The Ritz-Carlton Residences brand.
Additionally, lower fuel costs may positively impact transportation and logistics companies, contributing to improved profit margins. A case in point is Old Dominion Freight Line. The #3 Ranked company services on a regional, inter-regional and national basis. The services are inclusive of ground and air expedited transportation, apart from consumer household pickup and delivery through a single integrated organization.
Last Words
In conclusion, the sustained decline in gasoline prices presents a mixed bag of opportunities and challenges for investors. While consumers enjoy savings at the pump, investors should carefully consider the potential impacts on different sectors of the economy.