In this article, we discuss the 5 best travel stocks to buy right now. If you want to read about some more travel stocks, go directly to 11 Best Travel Stocks To Buy Right Now.
5. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 50
The Boeing Company (NYSE:BA) is an aerospace and defense firm. Even though the firm missed market estimates on earnings for the first quarter, driving a slump in the stock, there is room for the shares to climb given the overall profile of the firm. For example, the company has grown net debt from just $2 billion in 2018 to over $45 billion in 2022. The stock is also likely to benefit from the worsening security situation in Europe amid the Russian invasion of Ukraine. Rising interest rates will likely increase interest in the balance sheet of the company too.
On April 28, RBC Capital analyst Ken Herbert kept an Outperform rating on The Boeing Company (NYSE:BA) stock with a price target of $220, noting that the first quarter results of the firm may be a “clearing house event”.
At the end of the fourth quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in The Boeing Company (NYSE:BA), the same as in the preceding quarter worth $1.4 billion.
4. Airbnb, Inc. (NASDAQ:ABNB)
Number of Hedge Fund Holders: 63
Airbnb, Inc. (NASDAQ:ABNB) owns and runs an online travel platform. Flexible work arrangements and an increase in international travel due to the easing of virus restrictions will likely help the firm register a strong recovery this year. The company is leading the alternative accommodations market already with six million active listings and over four million hosts across 100,000 cities globally. The company has also pledged to offer more than 100,000 refugees of the Ukraine war with free lodging.
On April 19, Citi analyst Ronald Josey upgraded Airbnb, Inc. (NASDAQ:ABNB) stock to Buy from Neutral with a price target of $200, identifying the firm as a leader in the travel sector that continues to “innovate with newer products and services”.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Airbnb, Inc. (NASDAQ:ABNB) with 2.5 million shares worth more than $421 million.
In its Q3 2021 investor letter, Tollymore Investment Partners, an asset management firm, highlighted a few stocks and Airbnb, Inc. (NASDAQ:ABNB) was one of them. Here is what the fund said:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimising externalities. For example, Airbnb, Inc. (NASDAQ:ABNB) broke the link between staying in residential property and owning it. Airbnb, Inc. (NASDAQ:ABNB) is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
3. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 82
Expedia Group, Inc. (NASDAQ:EXPE) is an online travel firm. It is one of the biggest travel firms globally. At the end of 2020, it had 3 million lodging properties, 800 thousand hotels, and 500 airline companies available on the platform. These were spread in more than 200 countries. In the wake of the pandemic, the firm has employed manyu cost-saving initiatives that will bring in savings worth $900 million. Since it concentrates on the US market, there is plenty of room for the firm to grow in the continental Europe segment in the coming years.
On April 19, Citi analyst Ronald Josey assumed coverage of Expedia Group, Inc. (NASDAQ: EXPE) stock with a Neutral rating and a price target of $200, noting that consumer engagement online was growing and immersive, benefiting travel stocks.
At the end of the fourth quarter of 2021, 82 hedge funds in the database of Insider Monkey held stakes worth $7.4 billion in Expedia Group, Inc. (NASDAQ:EXPE), up from 71 in the previous quarter worth $6.4 billion.
In its Q4 2021 investor letter, Heartland Advisors, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:
“The run-up in equity prices over the past year and a half has narrowed the pool of attractively valued businesses. Economically sensitive areas of the market, in particular, have seen valuations stretched—but the impact of investor exuberance is evident in share prices of companies throughout the broader market. In our view, the elevated valuations commanded by many stocks have heightened risks and dampened upside potential.
In response to this backdrop, we continue to focus on finding and owning companies that are poised to succeed against a variety of backdrops or those that are priced at significant discounts to peers regardless of the sector or industry. Recent addition Expedia Group, Inc. (NASDAQ:EXPE) is an example of the type of business we’ve found attractive.”
2. Booking Holdings Inc. (NASDAQ:BKNG)
Number of Hedge Fund Holders: 92
Booking Holdings Inc. (NASDAQ:BKNG) provides reservation services. The firm continues to show strong recovery trends. Gross travel bookings in the fourth quarter of 2021 for the firm stood at around $19 billion, up 160% from the same period of 2020. The total revenues for the fourth quarter were $3 billion, an increase of 141% year-on-year. The net income for 2021 stood at over $1 billion, up from just $59 million in 2020. The company expects to grow revenue by 45% in 2022 and 18% in 2023.
On April 19, Tigress Financial analyst Ivan Feinseth kept a Strong Buy rating on Booking Holdings Inc. (NASDAQ:BKNG) stock and raised the price target to $3,210 from $3,150, noting that a massive recovery in global travel was driving improved booking trends.
At the end of the fourth quarter of 2021, 92 hedge funds in the database of Insider Monkey held stakes worth $7.7 billion in Booking Holdings Inc. (NASDAQ:BKNG), compared to 96 in the previous quarter worth $8.4 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Booking Holdings Inc. (NASDAQ:BKNG) was one of them. Here is what the fund said:
“The pandemic created opportunities for us to be more aggressive in a variety of areas of the market. We were opportunistic throughout the year, for example, in positioning the portfolio to benefit from a flush consumer eager to return to spending and traveling. New positions included Booking Holdings Inc. (NASDAQ:BKNG), an online travel agency with industry-leading margins and a dominant footprint in Europe.”
1. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 111
The Walt Disney Company (NYSE:DIS) is a media and entertainment firm. The stock has declined in the past few weeks following a political controversy in Florida and concerns around the growth of streaming firms despite heavy spending. The earnings momentum is also behind the firm as it expects to grow earnings per share to $4.44 in 2022, up more than 91% compared to the EPS in 2021. This pace of growth will slow to, but remain above average for the industry overall, 22% in 2023 and 2024.
On April 19, Rosenblatt analyst Barton Crockett initiated coverage of The Walt Disney Company (NYSE:DIS) stock with a Buy rating and a price target of $177, noting that demand for Disney theme parks was stronger than ever as international travel increased.
At the end of the fourth quarter of 2021, 111 hedge funds in the database of Insider Monkey held stakes worth $6.9 billion in The Walt Disney Company (NYSE:DIS), up from 101 the preceding quarter worth $9.4 billion.
In its Q4 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and The Walt Disney Company (NYSE:DIS) was one of them. Here is what the fund said:
“The communication services sector was a weak spot in both the benchmark and the portfolio in the fourth quarter. The Walt Disney Company (NYSE:DIS) announced lower than expected streaming subscriber growth to the company’s Disney+ offering, attributable primarily to the content release schedule. The Walt Disney Company (NYSE:DIS) has been ramping up content spending given strong global response to Disney+, although production capability was temporarily impacted by COVID-19. We still believe The Walt Disney Company (NYSE:DIS) is on track to reach the subscriber outlook outlined at its December 2020 analyst day, driven by a very robust slate of content releases, particularly in the 2022–2024 time period.”
You can also take a peek at 12 Best Environmental Stocks to Invest In and 10 Best Nickel Stocks to Buy Now.
