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Are the Travel Stocks Still Winners?

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  • (0:20) - Travel Stocks To Watch
  • (1:35) - Trip Advisor and Their New Website
  • (9:15) - The Many Websites For Booking Your Vacation: Expedia and Booking.com (Priceline)
  • (14:30) - The Airbnb Experience 
  • (17:40) - The Cruise and Train Line Attractions
  • (24:50) - Playa Hotels & Resorts and Publicly Traded Airports 
  • (31:20) - Episode Roundup: TRIP, BKNG, EXPE, RCL, NCLH, BEL, PLYA
  •                 Podcast@Zacks.com

Welcome to Episode #158 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by Zacks Product Manager Derek Kaplan, one of Zacks most avid travelers, to discuss what the trends are in the travel industry and which stocks investors should consider if they want to tap in on the travel boom.

Which Booking Sites Do You Use?

There’s plenty of hotel and airfare booking sites out there. But three big names stand out.

1.       TripAdvisor Inc. (TRIP - Free Report) is known for its reviews of hotels and restaurants but you can book hotel and excursions on it as well. Shares are up a whopping 79% year-to-date and even have momentum over the last 3 months despite the stock market weakness. The company has just launched a new website that incorporates social media features. Do you use TRIP to plan your travel?

2.       Booking Holdings (BKNG - Free Report) is Booking.com and Priceline, among others. Shares are trading at 20x forward earnings. It’s still expected to grow earnings in the double digits this year and next. Is it still the industry leader in online hotel bookings?

3.       Expedia (EXPE - Free Report) still has the name recognition which many online travelers flock to. Do you check several online sites for the best deals? Or are you loyal to one brand? Earnings are expected to jump 18.5% in 2019.

Cruises, Hotels and Timeshares

Wall Street is worried. With fears of a recession gaining momentum, travel is usually the first thing cut from the budget.

But is the panic overdone?

Investors should take a look at the cruise operators like Royal Caribbean (RCL - Free Report) . It trades with a forward P/E of just 11.8.

The publicly traded hotel chains, including the small, niche chains, should also be on the list.

Airlines continue to add routes to Mexico and the Caribbean. Mexico, in particular, remains one of the most popular destinations for travelers in the world.

Playa Hotel & Resorts (PLYA - Free Report) operates 20 resorts in Mexico and the Caribbean, including the popular Royal Playa del Carmen, in downtown Playa del Carmen in Mexico’s Riviera Maya, as well as the Jewel resorts in Jamaica.  

Shares are down nearly 40% year-to-date.

What other stocks can an investor buy to fill up a portfolio with companies specializing in travel and adventure?

Tune into this week’s podcast to find out.

[In full disclosure, Tracey owns shares of BKNG in her own personal portfolio.]

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