In this article we will take a look at the 5 travel stocks to buy right now. For a detailed analysis of the travel industry, go directly to 10 Best Travel Stocks to Buy Right Now.
5. The Walt Disney Company (NYSE: DIS)
Number of Hedge Fund Holders: 144
The Walt Disney Company (NYSE: DIS) is a California-based entertainment firm. Disney operates many theme parks and hotels but also has stakes in the mass media, consumer product and cruise line businesses. The company was founded in 1923 and is placed fifth on our list of 10 travel stocks to buy right now as COVID-19 restrictions ease and public places reopen following a difficult 2020. Disney has a market cap of more than $341 billion and posted more than $65 billion in revenue in October 2020.
On April 21, Disney announced that it had signed a deal with Sony Pictures to bring the Marvel film series on Disney streaming platforms. Media reports indicate that the deal is worth hundreds of millions of dollars but the official price has not been disclosed yet. On April 16, investment bank UBS forecast growing earnings for Disney’s theme parks and streaming services, and rated the company stock Buy with a price target of $215.
At the end of the fourth quarter of 2020, 144 hedge funds in the database of Insider Monkey held stakes worth $16 billion in the firm, up from 112 in the preceding quarter worth $8 billion.
Our calculations show that Walt Disney (NYSE: DIS) ranks 11th in our list of the 30 Most Popular Stocks Among Hedge Funds.
Harding Loevner, in their Q4 2020 investor letter, mentioned Walt Disney (NYSE: DIS). Here is what Harding Loevner has to say about Walt Disney in their Q4 2020 investor letter:
“One of the original constituents of the Nifty Fifty holds a place in our portfolio today. When we bought Disney three years ago, we wrote that “we view Disney theme parks in the US, Europe, and China as resistant to online substitution.” We did not reckon on a pandemic, which closed all of them, and sent all of usto our couches. Disney, however, wasready for us, brilliantly illustrating the importance of management foresight and change management. Or, as Louis Pasteur said, “chance favors the prepared mind.”
A century after its founding in 1923, Disney is in the middle of a bold shift from its legacy media networks & entertainment model—with cable TV, theme parks, and theater films dominating its earnings—to a direct-to-consumer streaming media model. The keys to Disney’s transition: matchless storytelling, coupled with financial strength. The company reliably creates content that people all over the world are eager to consume. It also hastened spending on original content to attract subscribers to its new streaming platform. These factors have allowed Disney to weather the pandemic having expanded its direct engagement with customers. Such connections yield a rich harvest of insights used to customize offerings on a mass scale, reinforcing that engagement in a virtuous circle and thereby raising the lifetime value of each customer. Subscribers to Disney+ reached 86.8 million one year after launch, compared to the 60 – 90 million management projected to reach in 2024. To be sure, Netflix, Apple, and Amazon remain formidable competitors in new-era streaming entertainment (mind what we said about everyone standing up at once), but there’s fight left in this old dog.”
4. Expedia Group, Inc. (NASDAQ: EXPE)
Number of Hedge Fund Holders: 76
Expedia Group, Inc. (NASDAQ: EXPE) is a Seattle-based digital travel firm. The brands it owns and operates include Expedia.com, Vrbo, Hotels.com, Hotwire.com, Orbitz, Travelocity, trivago and CarRentals.com. Expedia has a market cap of more than $25 billion and posted $5 billion in annual revenue in December 2020, down more than 50% from the $12 billion reported the year before. Even though COVID-19 hit the company hard, it is expected to make a strong recovery as a travel boom is expected after pandemic restrictions ease.
Expedia was founded in 1996 and is placed fourth on our list of 10 best travel stocks to buy right now. Seeing the signs of the economic recovery, investment bank Morgan Stanley on March 25 increased its price target on Expedia stock to $200 from $160, maintaining an Equal Weight rating on the company stock.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm D1 Capital Partners is a leading shareholder in the firm with 12 million shares worth more than $1.6 billion.
3. Avis Budget Group, Inc. (NASDAQ: CAR)
Number of Hedge Fund Holders: 28
Avis Budget Group, Inc. (NASDAQ: CAR) is a New Jersey-based company involved in the car rental and sharing business. It manages many car-related brands, including Avis Car Rental, Budget Car Rental, Budget Truck Rental, Zipcar, Payless Car Rental, Apex Car Rentals, Maggiore Group, and France Cars. The firm also provides insurance services for customers for protection against accidents. Avis was founded in 1946 and operates in more than 10,000 locations globally.
On March 16, investment bank Morgan Stanley downgraded the rating of Avis stock to Equal Weight from Outperform and revised the price target to $67. Although the shares of Avis fell 2.3% after the ratings update, they have since gained on the back of positive gains from the emerging post-pandemic situation in the United States.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm SRS Investment Management is a leading shareholder in the firm with 18.4 million shares worth more than $687 million.
2. Marriott International, Inc. (NASDAQ: MAR)
Number of Hedge Fund Holders: 58
Marriott International, Inc. (NASDAQ: MAR) is a Maryland-based hotel company. The properties that the firm runs include JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Delta Hotels, and Marriott Executive Apartments, among several others around the world. It has more than 7,000 operations under its control in more than 130 countries. It was founded in 1927 and is ranked second on our list of 10 best travel stocks to buy right now.
Marriott has a market cap of over $47 billion and posted an annual revenue of close to $2.2 billion in December 2020, down from more than $5 billion reported the year before. On February 22, investment bank Morgan Stanley improved the price target on Marriott stock to $123 from $120 as lockdown restrictions eased and the firm reported an increase in bookings at its establishments globally. The company operates one of the largest luxury hotel chains in the world and will stand to benefit from increased travel after the lockdown is lifted.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Eagle Capital Management is a leading shareholder in the firm with 12.4 million shares worth more than $1.6 billion.
1. Booking Holdings Inc. (NASDAQ: BKNG)
Number of Hedge Fund Holders: 108
Booking Holdings Inc. (NASDAQ: BKNG) is a Connecticut-based travel technology firm. The company owns and runs Booking.com that provides online reservation services to many travel destinations, hotels, and restaurants around the world. The firm also runs Rentalcars.com, Priceline, Agoda, KAYAK, and OpenTable, all products that compliment its travel business. The firm was founded in 1997 and is placed first on our list of 10 best travel stocks to buy right now.
On April 13, investment bank Jefferies echoed market sentiment by upgrading the rating of Booking stock to Buy from Hold and increased the price target to $2800 from $2300. The bank said that Booking could witness strong growth in 2021 as increased travel would lift the revenues for the firm after a dismal 2020.
At the end of the fourth quarter of 2020, 108 hedge funds in the database of Insider Monkey held stakes worth $8.2 billion in the firm, down from 113 in the previous quarter having shares worth $6.6 billion.
RiverPark Large Growth Fund, in their Q1 2021 investor letter, mentioned Booking Holdings Inc. (NASDAQ: BKNG). Here is what RiverPark Large Growth Fund has to say about Booking Holdings Inc. in their Q1 2021 investor letter:
“We bought back a position in Booking Holdings during the quarter. Booking is the world’s leader in online travel, operating in 200 countries with brands including Booking.com, priceline.com, agoda.com, Kayak, Rentalcars.com and OpenTable. The company has been a dominant on-line travel agency for more than a decade with a high margin business model (40% EBITDA margin for 2019) that requires limited capital expenditures, typically less than 3% of revenue, producing $4.5 billion free cash flow for 2019. This cash flow has been used for episodic acquisitions as well as to return cash to shareholders.
BKNG is well positioned in travel as the largest player in online lodging bookings and the second largest player in alternative accommodations. Like all travel companies, Booking was hit hard by the pandemic, but with its high international exposure, we expect the company’s recovery to be equally strong when travel returns.”
You can also take a peek at 10 Best Biotech Stocks To Buy For 2021, and Top 10 Best Freelancing Platforms and Websites for 2021.
