Top Travel Stocks in 2022
2022 could see large growth in the tourism sector, as worries over covid spikes appear to be subsiding and people get back to living life again. Plus, many consumers have saved more money to spend on a “bucket list” vacation. But which companies could stand to gain the most? Read on to see our top 5 picks. After that, we’ll also let you know what fundamental events are worth checking out this week.
A massive growth year ahead?
Here are just some of the more promising stocks, should that indeed be the case.
#1 Airbnb (ABNB)
Everyone’s favourite C2C holiday home platform now boasts over 5 million listings across 220 countries and regions. The company’s Q4 earnings reports showed that they had seen 67% YoY growth, and Q3/2021 saw the company post its highest-ever revenue and net profit levels.
Investors will be hoping that this is all a sign of things to come, ahead of what will surely be a busy summer for the San Francisco based company.
Price on 01.01: $172.68
Price on 19.03: $167.00
% change YTD: −3.29%
#2 American Airlines (AAL)
American Airlines is expecting high demand over the coming months. But let’s be honest, airlines have a lot of ground to catch up. The company expects Q1 FY 2022 revenue to be about 20% to 22% below the revenue it generated in Q1 FY 2019, before the pandemic.
The US’ biggest airline can be used as a yardstick for the rest of the industry. A massive summer surely lies ahead.
Price on 01.01: $18.76
Price on 19.03: $16.75
% change YTD: −10.67%
#3 Royal Caribbean Cruises (RCL)
Unlike American Airlines, RCL predict that the company will actually reach pre-lockdown passenger levels within the next year, with very high bookings recorded for the coming summer and throughout 2022 in general.
Each quarter in 2021 showed steady performance growth, giving investors reason to be excited over the coming months.
Price on 01.01: $80.83
Price on 19.03: $78.18
% change YTD: −5.75%
#4 Expedia Group (EXPE)
Like many on this list, holiday fare aggregator, Expedia, had a 2021 to forget, recording a loss of £164 million. The lovely shade of green on the chart below shows that those days may already be behind the company.
Investors will be analysing this performance and hope the earliest recovery story of these companies will only be in its infancy. Things certainly look promising.
Price on 01.01: $184.97
Price on 19.03: $193.18
% change YTD: +4.44%
#5 Booking Holdings (BKNG)
Like Expedia, Booking.com operates several aggregators and metasearch engines for airline tickets, hotels and car rentals. That always makes it a go-to company for holidaymakers. The company expects this year to be a boom one.
When the pandemic hit, Booking.com raised large amounts of capital, while also cutting costs, shedding 25% of its global workforce. The idea was to shore up the company’s short term future.
That drop earlier this month was the impact of rising oil prices due to the war in Ukraine and the international response. Like many on this list, its stock price over the next few years will be tied very closely to energy prices. Keep an eye on those!
Price on 01.01: $184.97
Price on 19.03: $193.18
% change YTD: -11.18%
What do you think?
Is now the right time to start reinvesting in travel stocks? Have you already? Let us know what you think and why by tweeting us at @_contentworks.
Top trading events week commencing 21.03.22
There’s not a huge amount going on this week, here’s everything you need to know.
Monday
No major events are scheduled.
Tuesday
No major events are scheduled.
Wednesday
● GBP — Core Inflation Rate YoY (FEB)
● GBP — Inflation Rate YoY (FEB)
Thursday
● USD — Durable Goods Orders MoM (FEB)
● USD — Markit Manufacturing PMI Flash (MAR)
Friday
● USD — Michigan Consumer Sentiment Final (MAR)
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Speak soon!
The Contentworks team
