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3 Travel Stocks to Buy Now: Q2 Edition
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
While revenge travel may be a fading concept, consumers still value accruing their vacation hours, potentially boding well for certain travel stocks to buy now.
According to a Deloitte report, we may be moving into a new era of travel prioritization . Per Hotel Dive’s summary of the analysis, “The report found that travelers are most likely to splurge on in-destination experiences , lodging location and destination distance.” So, the desire to explore hasn’t diminished. Rather, certain preferences may have shifted.
Plus, expenditure data shows that people are still opening their wallets. That being the case, it’s a great time to consider travel stocks to buy now.
Hilton (HLT)
One of the biggest brands in the lodging industry, Hilton (NYSE: HLT ) engages in managing, franchising, owning and leasing hotels and resorts. It operates through two segments: Management and Franchise, along with Ownership. Fundamentally, HLT stock faces stiff competition from the sharing economy, namely Airbnb (NASDAQ: ABNB ). Nevertheless, Airbnb may be losing its luster.
Increasingly, I’ve been reading up on some horror stories about the company and its users’ experiences. Granted, this is not the majority experience. However, it’s worth noting that the company has a hold consensus among analysts. Also, its average price target of $147.07 implies an 8% downside risk.
On the other hand, experts rate HLT stock a consensus moderate buy with a $213.91 price target. That implies about 8% upside potential. However, the high-side estimate calls for a price per share of $254.
Analysts are also looking at revenue to reach $11.24 billion, up 9.8% from last year’s haul of $10.23 billion. Overall, it could be an intriguing idea for travel stocks to buy now.
United Airlines (UAL)
As one of the top-tier names in the airline industry, United Airlines (NASDAQ: UAL ) could be a huge beneficiary if travel sentiment truly picks up. What’s intriguing about UAL stock is that the share price is heavily discounted relative to its pre-pandemic levels. Therefore, if the aforementioned prioritization occurs, United could enjoy a significant upside pathway.
One aspect to consider is the company’s strong financial performance. In the trailing four quarters, the average surprise came out to 31.45%. Further, UAL recently popped higher on the underlying company’s strong earnings forecast . Even with the boost, analysts’ average price target of $58.27 implies upside potential of over 13%. Further, the high-side target reaches an ambitious $75.
For fiscal 2024, experts anticipate revenue of $57.39 billion. That’s up 6.8% from last year’s print of $53.72 billion. Also, the most optimistic target calls for sales of $58.33 billion. In the following year, the top line could rise to $60.27 billion. Thus, it makes a reasonable case for travel stocks to buy now.
Uber (UBER)
As the company that launched the ride-sharing concept (and the concept of the sharing economy), Uber (NYSE: UBER ) is a powerhouse among travel stocks to buy now. What makes it compelling is that it’s attacking the broader value chain. Yes, the core business will center on ride sharing. However, it’s making big inroads into food deliveries and even shipping.
Regarding the ride-sharing unit, Uber presents two main avenues for growth. First, the service caters to everyday mobility needs. Second, when going abroad to places where English isn’t the main language, the underlying app is a lifesaver. Basically, the traveler and the driver conduct business via the app, not with each other. So, there are less likely to be problems (i.e. scams).
Notably, analysts are quite bullish on UBER stock, forecasting EPS of $1.28 for the current fiscal year. That’s up from last year’s result of 82 cents. On the top line, they’re projecting sales of $40.79 billion or a growth rate of 16.2%. The next year, revenue could fly to $47.47 billion. For speculators, UBER is one of the travel stocks to buy now.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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The post 3 Travel Stocks to Buy Now: Q2 Edition appeared first on InvestorPlace .
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Time to Plan Your Next Trip: 5 Companies with New Bike Bags at Sea Otter
Hydration, travel protection, windows, and ultra-endurance solutions..
Heading out the door? Read this article on the new Outside+ app available now on iOS devices for members! >","name":"in-content-cta","type":"link"}}'>Download the app .
Welcome to Velo’s Sea Otter Classic coverage, where we share our favorite things we’ve seen at the 2024 show. Bikes, components, everything racing, and more: if we think it’s cool, you’ll see it. See the rest of our coverage here .
Riding back and forth from the Sea Otter expo this week I constantly want better bike bags and easier ways to carry my gear. At the same time I’m also planning a variety of summer rides that will involve carrying what I need to sleep under the stars or ride for more than a day. As such it seemed like an opportune time to see what was being offered for bikepacking and commuting bags here at Sea Otter.
Revelate Designs
For those looking to do anything lasting more than a day, Revelate Designs is an Alaskan brand and an innovator in the bikepacking and ultra endurance space with an outsized influence. Although the brand isn’t all that old, ambassadors such as Rebecca Rusch and Lael Wilcox put Revelate into a small group of companies that have become synonymous with pushing beyond what most people consider possible.
This year Revelate is showing a small waterproof seat bag, ultra racing aero bar storage system, an innovative cargo cage, and an update to the Mag-Tank cockpit bag. Check revelatedesigns.com for more details on the latest Mag-Tank, Tarsier Cargo Cage, Pitchfork aerobar system, and a waterproof pouch called simply The Stoat.
Sea Otter was my introduction to a small new brand called Capsuled. Volcanic Ash, Cloud Dancer, and Military Olive (in layman’s terms: light gray, white, and olive) are the three color offers across a range of five bags. So far the models are all commuter focused with various ways to carry a few things either on your body or on the bike. Each uses a lightweight construction, 100 percent recycled material, reflective stripes, and high-quality zippers.
Now the brand is taking those same core design principles and applying them to options for going a bit farther. There’s a new saddle bag, top tube bag, frame bag, and handlebar all with the ability to see what you are carrying. Each bag features a handy window that gives a glimpse of what’s inside while maintaining a cohesive style.
As I write this Capsuled hasn’t added the new bags to the brand’s website but if you are interested keep an eye on capsuled.cc for more information and purchase.
While Capsuled is a new entry into the the on-bike backpack space, Evoc offers long history and a wide range of options. This year Evoc was showing new hip-packs and backpacks and adding both ventilation and options. The designs weren’t completely different from what we’ve come to expect from Evoc over the years but there’s been an update to the unique “Airflow Contact System.”
Admittedly it’s not a big one as the basic concept of large EVA pads behind an open mesh continue to enable a close fit without causing a wet spot on your back. There is an updated, coarser, mesh covering to further improve ventilation and the new design shows up on the Stage hydration pack series and the Hip Pack Pro 3. For those looking for a more dedicated hydration vest, compared to the Stage hydration pack, then there’s also a new, larger, Hydro Pro 6 hydration vest.
You can find more details and purchase at evocsports.us
Orucase is best known for bike bags that don’t look like bike bags. Since the original model that sported a therapy equipment tag and tried to pretend it wasn’t a bike, things have actually expanded a bit. The B2 is still small enough to wear as a backpack but it’s a little bigger and a little easier to use. Orucase does make some clever products beyond just bike bags though. This year the brand was showing a disc rotor protector that eliminates the need to remove them for travel (what, you don’t remove them? Well now they are protected) as well as new sizes and colors for the Janus Duffel with padded pockets for helmets and accessories. Founder Isaac Howe also pointed out that in a remarkable turn of events he has updated some of the accessories and they are now selling at a lower price with a more durable material and with more color options.
Find more details and purchase at orucase.com
Selle San Marco
While Selle San Marco isn’t a new company, it might not be the first one you think of when you think about bags. I had plenty of questions about the decision to move from ergonomics into luggage but Selle San Marco communicated that adventure and ergonomics go hand in hand.
The partnership starts with a saddle and expands from there. The Regal is a classic saddle, first introduced 40-years ago, and now it’s back as a modern interpretation specifically designed for adventure. Further pushing into that category only made sense, and to make it happen, the brand partnered to gain experience. Missgrape is a well known and established company in the bikepacking bag space with 12 years of experience. The full range of Selle San Marco bags, nine in total, all bear both company logos.
Find more details and purchase at Sellesanmarco.com
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