October 5, 2022

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Just Do Travel

What Stocks To Buy Today? 3 Travel Stocks To Watch

5 min read

As investors search for what stocks to buy today, travel stocks seem to be in mind. For starters, the euro is near parity with the U.S. dollar, which marks a two-decade low. This would be a bonus point for Americans traveling to Europe this summer. With this exchange rate, travelers’ dollars will go further when buying things abroad. As such, its no surprise that that investors would continue to keep tabs the top travel stocks in the stock market now. 

Despite the challenges posed by the COVID-19 pandemic, many travel stocks are expected to rebound in 2022. Evidently, shares of Delta Air Lines (NYSE: DAL) have rebounded by over 7% in the last month of trading. The travel industry was hit hard by the pandemic, with travel restrictions and a decrease in demand leading to a significant drop in revenue. However, as vaccines become more widely available and travel restrictions start to ease, travel demand is expected to rebound.

This has led to many top travel stocks being identified as potential good investment opportunities for 2022. Airlines, hotels, and cruise lines are all expected to benefit from the return of travel demand, making them worth considering for anyone looking to invest in the top travel stocks now. With that said, here are three trending travel stocks that reported earnings in the stock market today.

Best Stocks To Buy [Or Avoid] Today

JetBlue Airways Corporation (JBLU Stock)

Starting us off is the low-cost airline company, JetBlue. The company operates over 1,000 flights daily and serves 100 domestic and international network destinations. These destinations span the U.S., Mexico, the Caribbean, Central America, South America, and Europe. Additionally, JetBlue’s differentiated product combined with its competitive cost structure enables JetBlue to compete effectively in high-value geographies.

JBLU has been in the headlines as of late. This is a result, of its recent announcement that it will acquire Spirit Airlines (NYSE: SAVE) for $33.50 per share in an all-cash deal. Also, on Tuesday the company reported its second quarter 2022 earnings. In it, they reported a loss of $0.47 per share on revenue of $2.4 billion. For context, the consensus estimates were a loss of $0.11 per share on revenue of $2.4 billion.

We reported a record-breaking revenue result for the second quarter, and we’re on pace to top it again here in the third quarter and drive our first quarterly profit since the start of the pandemic. I’m proud to say that our operational performance improved significantly through the quarter, and we capitalized on the strong demand environment to deliver revenue growth above the top-end of our original guidance range,” commented CEO of Jetblue Robin Hayes. Given the company’s recent M&A announcement, will you keep JBLU stock on watch?

Source: TD Ameritrade TOS

[Read More] Best Growth Stocks To Buy Now? 4 Stocks For Your July 2022 Watchlist

Uber Technologies, Inc. (UBER Stock)

Next, let’s take a deep dive into Uber Technologies (UBER). Uber Technologies is a company that leverages software for its core businesses. The mobility-as-a-service provider has operations in over 900 metropolitan areas around the globe. Its services range from ride-hailing to food delivery services through its Uber Eats and Postmates platform. For a sense of scale, Uber has an estimated 68% market share in ride-sharing and a 26% market share in food delivery. With that, On Tuesday shares of UBER stock jumped over 18% to $29.03 per share.

This comes on the heels of the company reporting its second-quarter 2022 fiscal earnings. Diving right in, Uber posted a loss of $1.33 per share on revenue of $8.1 billion. The consensus estimate was a loss of $0.25 per share on revenue of $7.4 billion. As a result, Uber beat analysts’ revenue expectations, despite posting a $2.6 billion loss. Next, the company posted a 33% year-over-year increase in gross bookings for the quarter.

“We became a free cash flow generator in Q2, as we continued to scale our asset-light platform, and we will continue to build on that momentum,” said Nelson Chai, CFO. “This marks a new phase for Uber, self-funding future growth with disciplined capital allocation, while maximizing long-term returns for shareholders.” With all this being said, is UBER stock a buy at these price levels?

UBER stock chart
Source: TD Ameritrade TOS

[Read More] 3 Green Hydrogen Stocks To Watch This Week

Marriott International, Inc. (MAR Stock)

To round off this list, we have Marriott International (MAR). The Maryland-based company encompasses a portfolio of more than 8,100 properties under 30 leading brands spanning 139 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. On Tuesday afternoon, shares of MAR stock are flat on the day trading at $158.51 per share. This comes after the company reported its second quarter 2022 fiscal earnings on Tuesday morning.

In detail, Marriott reported earnings of $1.80 per share on revenue of $5.3 billion. Compared with, the consensus earnings estimate of $1.59 per share on revenue of $5.0 billion. Also, the company said it estimates third-quarter earnings between the range of $1.59 to $1.69 per share and 2022 full-year earnings per share of $6.33 to $6.59 per share. The company said it expects third-quarter earnings of $1.59 to $1.69 per share and 2022 earnings of $6.33 to $6.59 per share. The current consensus estimate is earnings of $1.58 per share for the quarter, and earnings of $6.09 per share for the year, respectively.

Anthony Capuano, Chief Executive Officer, said, “Marriott’s second quarter results highlight consumers’ love for travel.  We reported outstanding results, as momentum in global lodging recovery continued.  With demand increasing across all customer segments throughout the quarter, and nearly all countries easing travel restrictions, worldwide RevPARsurpassed 2019 levels in June.  Second quarter average daily rate was robust, at 7 percent above 2019 levels, and worldwide occupancy reached 68 percent.” Now, would you add MAR stock to your radar today?

MAR stock
Source: TD Ameritrade TOS

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.