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 Quick QuoteHLT - Free Report) , Marriot Vacations Worldwide (VAC Quick QuoteVAC - Free Report) and Old Dominion Freight Line (ODFL Quick QuoteODFL - 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.