The concept of revenge travel may be fading, but consumers still value paid time off, and it could bode well for certain travel stocks to buy now.
According to a report from Deloitte, we may be moving into a new era that prioritizes travel. According to Hotel Dive's analysis summary, “This report finds that travelers are most likely to splurge on destination experiences, where they stay, and distance to their destination.” It hasn't declined. Rather, certain preferences may have changed.
Moreover, spending data shows that people are still opening their wallets. If so, now is a great time to consider buying travel stocks.
Hilton (HLT)
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One of the largest brands in the lodging industry. hilton (New York Stock Exchange:HLT) is engaged in the management, franchising, ownership and leasing of hotels and resorts. He operates through two segments: management, franchising, and ownership. Fundamentally, HLT stock faces stiff competition from the sharing economy. airbnb (NASDAQ:ABNB). Nevertheless, Airbnb may be losing its luster.
I've been reading more and more horror stories about the company and its users' experiences. Admittedly, this is not the experience of the majority. However, it is worth noting that the company has a Hold consensus among analysts. Additionally, the average price target of $147.07 implies a downside risk of 8%.
Meanwhile, experts rate the HLT stock as a consensus moderate buy, with a price target of $213.91. This implies an upside potential of approximately 8%. However, the high end forecast puts the price per share at $254.
Analysts also expect sales to reach $11.24 billion, up 9.8% from last year's $10.23 billion. Overall, this could be an interesting idea for travel stocks to buy now.
United Airlines (UAL)
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As a top-class company in the aviation industry, united airlines (NASDAQ:UALIf the desire to travel really picks up, there could be significant benefits. What's interesting about UAL stock is that the stock is trading at a steep discount to pre-pandemic levels. Therefore, United could enjoy a significant upward trajectory if the aforementioned priorities come to fruition.
One aspect to consider is the company's strong financial performance. His four quarter average surprise rate after that was 31.45%. Additionally, UAL has recently surged on the back of strong earnings forecasts for the underlying companies. Even with the upside, analysts' average price target of $58.27 suggests a potential upside of more than 13%. Additionally, the upper limit goal reaches an ambitious $75.
Experts predict sales for fiscal year 2024 to be $57.39 billion. This is a 6.8% increase from last year's circulation of $53.72 billion. Also, the most optimistic target puts sales at his $58.33 billion. The maximum amount could reach $60.27 billion next year. So there's a good case for travel stocks to buy now.
Uber
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As a company that introduced the concept of ride sharing (and the concept of sharing economy), Uber (New York Stock Exchange:Uber) is one of the leading travel stocks to buy right now. What makes this so compelling is that it attacks the broader value chain. Yes, our core business is ride sharing. But it's also making big inroads into food delivery and delivery.
When it comes to the ride-sharing sector, Uber presents two major growth avenues. First, the service addresses everyday mobility needs. Then, if you go abroad where English is not the main language, the underlying app will be your savior. Essentially, travelers and drivers transact through the app rather than with each other. Therefore, problems (such as fraud) are less likely to occur.
Notably, analysts are quite bullish on UBER stock, expecting it to report EPS of $1.28 for the current fiscal year. This is up from last year's result of 82 cents. At the top, sales are projected to be $40.79 billion, or a growth rate of 16.2%. Next year's revenue could jump to $47.47 billion. For speculators, Uber is one of the best travel stocks to buy right now.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
