Yahoo Finanza Best Travel Stocks To Buy Now
Key Insights
Airline stocks have rallied as traders focused on strong demand for travelling ahead of the summer season.
Travel stocks like Booking and Expedia have not developed upside momentum, but they trade at reasonable valuations and have a good chance to gain more ground.
In case the situation with coronavirus continues to improve, this market segment will attract more interest.
Airline stocks have already enjoyed a strong rally from recent lows as the market focused on pent-up demand ahead of summer, and it’s high time to take a look at travel stocks, which may also benefit from the recent trends.
Booking Holdings
Booking stock is down by about 6% year-to-date. Analysts expect that the company will report earnings of $89.7 per share in the current year and earnings of $122.94 per share in the next year, so the stock is trading at roughly 18 forward P/E.
While Booking’s price does not look too cheap, the company’s shares are trading at a reasonable valuation level and have a good chance to gain upside momentum ahead of the summer season.
Marriott International
Trading at 27 forward P/E for 2023, Marriott is more expensive than Booking. However, analyst estimates for the hotel chain have been steadily moving higher in recent months, and it’s not surprising to see that traders are willing to pay a premium for the company’s stock.
It should be noted that Marriott shares have recently tested all-time high levels, so the stock has a solid technical momentum.
Expedia Group
Like Booking, Expedia stock is also trading at 18 forward P/E, and earnings estimates keep moving higher. Expedia stock is up by about 4% year-to-date, so the stock failed to develop upside momentum despite rising analyst estimates.
However, Expedia stock should have a decent chance to move towards the yearly highs that were tested back in February in case traders focus on strong demand for travel ahead of summer.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
