We all know that the pandemic hurt the travel industry. Well, travel expenditures in the United States rose by 0.9% last summer and showed a year-to-date increase of 4.7% through June 2023.
Air travel saw a significant 12% surge in demand during June, aligning with the peak summer travel period.
“The Travel & Tourism sector continues to recover at pace, demonstrating the resilience of the sector and the enduring desire to travel. By the end of the year, the sector’s contribution will be within touching distance of the 2019 peak. We expect 2024 to exceed 2019. Travel & Tourism will be a growth sector over the next ten years.”
That quote was not taken from a stock analyst but from Julia Simpson, the President and CEO of the WTTC (World Travel and Tourism Council). That’s really saying something. After reading it, I found three travel stocks with incredible momentum behind them…
Bluegreen Vacations Holding Corp (BVH)
First up is Bluegreen Vacations Holding Corp. (BVH), a vacation ownership company that manages resorts across diverse locations, promotes and sells vacation ownership interests (VOIs), and offers financing to qualified buyers. BVH also offers services for vacation clubs and homeowners’ associations. BVH demonstrates appealing metrics. Up by 47.04% year-to-date, BVH’s stock has a positive 20/200 day SMA (simple moving average), a positive ROE (return on equity), and positive TTM (trailing twelve-month) momentum and asset growth.
For Q2 2023, BVH reported impressive financials. Total revenue increased by 10.6% year-over-year to $260.62 million, and BVH’s VOI sales grew to $150.36 million, up by 4.2% from the prior year. BVH‘s net income and EPS also demonstrated substantial year-over-year growth, reaching $21.91 million (+23.22%) and $1.34 per share (+54.02%). For Q3 2023, BVH is projected to report $255 million in sales at $1.41 per share. BVH has an annual dividend yield of 2.18% and a quarterly payout of 20 cents ($0.80/year) per share. Per analyst forecasts, BVH has an average price target of $59, with a high of $66 and a low of $52; this indicates the potential for an almost 80% increase in pricing from its present position.
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Airbnb Inc (ABNB)
Airbnb Inc. (ABNB) and its affiliates run a global platform connecting hosts and guests for accommodations and experiences. ABNB stock is up year-to-date by 59.06%, with a positive ROE and positive TTM asset growth and momentum growth. Significantly, ABNB boasts a free cash flow margin of 25.31%, surpassing the industry average by an impressive 505.8%. Its TTM net income margin of 0.64x also outperforms the industry average by 31.6%.
For its Q2 2023 earnings report, ABNB certainly impressed shareholders and Wall Street alike, as it exceeded analysts’ projections easily; it reported EPS of $0.95 per share vs. $0.79 per share as expected, a 21.13% margin win, while it beat revenue estimates by 2.69%. ABNB also reported year-over-year growth in revenue (+18.06%), net income (+71.50%), EPS (+75%), and net profit margin (+45.31%). ABNB‘s outlook
remains promising, with a consensus revenue projection of $9.84 billion for the fiscal year, while $3.2 billion at $1.99 per share is expected for Q3 2023’s earnings report in November.
ABNB has exceeded EPS estimates in the past four quarters, showcasing its commitment to shareholder value. With a 10-day average volume of 5.78 million shares, ABNB has a median price target of $142, with a high of $175 and a low of $75; this represents a potential 29% price leap.
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Marcus Corp (MCS)
MCS Corp. (MCS), with its subsidiaries, operates movie theaters, hotels, and resorts throughout the United States. MCS is up year-to-date by 13.41%, and it boasts attractive metrics: It has a beta score of 0.82 and a forward EV/S (enterprise value to sales) ratio of 1.22x, which is notably 34.3% lower than the industry average, while the P/S (price to sales) ratio of 0.73x is below the industry average by 41.2%. MCS has a 1.71% annual dividend yield and a quarterly payout of 7 cents ($0.28/year) per share.
For its Q2 2023 earnings call, MCS reported strong financial results and surpassed analysts’ projections on EPS and revenue; it reported EPS of $0.35 per share vs. $0.24 per share as expected (a 45.83% surprise), and revenue of $207 million vs. $198.73 million as expected (a 4.17% win). MCS also reported year-over-year growth in revenue (+3.70%), net income (+50.29%), EPS (+50%), and net profit margin (+44.80%). For the current quarter, MCS is projected to report $190.5 million at $0.21 per share. Trading around the middle of its existing range, MCS’ average price target is $21.50, with a high of $23 and a low of $21, representing a potential 41% price jump from what it’s trading at currently.
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