The Summer Holiday Season Is Here… Or Is It? Let’s Talk Holiday Stocks…
It’s time for your weekly trading preview and this week we’re going to assess how a selection of holiday companies are coping in what should be their ‘silly-season’. After that, we’ll have a peek at all of the events you’ll need to watch this week.
What’s going on with holiday company stocks?
You know how the song goes…
“In the summertime, when the weather is hot… Everyone is very confused about whether or not they can go on holiday, what with the global pandemic and all.”
Hmm, not quite as catchy as we remember it! But that’s exactly the quandary that we’re all in at the moment. But, as airports begin to open up and people start to rethink their travel plans, could the hell that holiday companies are expecting be averted? Let’s check how are they actually faring…
1. TUI Group
Price on 02.01: 11.62 EUR
Price on 12.05: 5.07 EUR
YTD high: 11.62 EUR
YTD low: 2.89
YTD percentage change: -56.37%
TUI AG, YTD
2. International Airlines Group (British Airways, Iberia, Vueling, Aer Lingus)
Price on 02.01: 636.20 GBX
Price on 12.05: 275.50 GBX
YTD high: 671 GBX
YTD low: 168.20 GBX
YTD Percentage change: -56.7%
3. Booking Holdings (Booking.com, Priceline.com, Kayak.com, Cheapflights, Momondo)
Price on 02.01: 2,074.58 USD
Price on 12.05: 1,623.92 USD
YTD high: 2,086.90 USD
YTD low: 1,152.24
YTD Percentage change: -21.72%
4. Expedia Group Inc (Expedia, Travelocity, trivago)
Price on 02.01: 110.98 USD
Price on 12.05: 82.52 USD
YTD high: 122.80 USD
YTD low: 45.65 USD
YTD Percentage change: -25.64%
Price on 02.01: 46.60 CHF
Price on 12.05: 24.00 CHF
YTD high: 48.80 CHF
YTD low: 15.75 CHF
YTD Percentage change: -48.5%
6. eDreams ODIGEO (eDreams, Opodo)
Price on 02.01: 4.30 EUR
Price on 12.05: 2.86 EUR
YTD high: 5.40 EUR
YTD low: 1.56 EUR
YTD Percentage change: -33.49%
Okay, so not exactly what you’d call a bumper year for any of these companies. Survival has been the aim of the game. However disastrous 2020 has been so far, each of these charts tells a more optimistic story than one might think.
Take a look at those YTD lows, some of them are beyond awful. Yet, all of these companies have found a way to ride the storm and stage some form of a comeback in June. This is almost entirely based on the fact that, even though destinations may be slightly more limited than usual, holidaymakers should be able to get on a plane and travel, should they wish to do so. And that hope has handed a vital lifeline to these companies.
We’ll keep an eye on these six and revisit each of them at the end of the season to analyse what really happened. It can only go one of two ways!
This week’s market events
Here’s what to keep an eye on this week.
● We’ll kick-off a busy week on Tuesday, with some important announcements, such as the Interest Rate Decision (JPY) from the Bank of Japan; the UK’s latest unemployment figures (GBP); and the US’ Retail Sales numbers (USD).
● Wednesday will kick off with a look at the UK’s YoY Inflation Rate (GBP); before taking a look at those of the EU (EUR) and Canada (CAD).
● Thursday brings a look at New Zealand’s GDP (NZD); as well as some important Aussie (un)employment figures (AUD); and finally the Bank of England’s Interest Rate Decision (GBP).
● We’ll end the week with a look at Japan’s YoY Inflation Rate (JPY).
That’s your lot. Did you enjoy reading this? Because we loved writing it! We’re a busy content house, capable of prepping all kinds of financial and trading-related content. If you think your traders might be interested in something like this, get in contact!
The Contentworks team