This is an adventurous idea in many ways, but if you believe in the enduring power of revenge travel, these ideas about the best travel stocks to buy in April may appeal to you.
According to Deloitte research, the immediacy of revenge travel feelings is likely weakening. After all, it has been some time since governments around the world opened their borders in response to the coronavirus pandemic. Going abroad is no longer a necessary novelty experience. Nevertheless, consumers may prioritize vacations in new ways.
Certainly, investors should be aware of the risk factors. Currently, there appears to be a shift away from risk-on stocks. Additionally, our industry is highly dependent on the health of the economy. Still, if you believe the trends outlined above, these are the best travel stocks to buy in April.
Uber
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Not the purest company in the industry, but a ride-sharing pioneer Uber (New York Stock Exchange:Uber) nevertheless ranks as one of the best travel stocks to buy in April. Basically, it's because Uber is contributing to the “decentralization” of mobility abroad. Before ride-sharing platforms, people needed to know the basics of a language to get around. All you have to do is press a few buttons on your phone.
Speaking from personal experience, I have taken Uber in countries thousands of miles from home. It's a really beautiful innovation.Moreover, in this sense I rate his Uber higher than its rivals lift (NASDAQ:lift). The former just covers a lot more ground than the latter. Additionally, aside from some hiccups in the third quarter, the company has performed well in terms of quarterly revenue.
Experts are predicting earnings per share of $1.34 in 2024. This is significantly higher than last year's EPS of 87 cents. In addition, sales are expected to increase by 16.1% to $43.3 billion from $37.28 billion in 2023.
Overall, analysts give the stock a consensus rating of Strong Buy, with a price target of $87.19, suggesting upside potential of over 16%.
Choice Hotels (CHH)
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hotel franchisor, choice hotels (New York Stock Exchange:CHH) operates in the United States and internationally. He operates his business through two segments: Hotel Franchise and Management and Corporate and Other. CHH in particular has some interesting ideas about the best travel stocks to buy in April since it owns discount brands. Indeed, people may want to enjoy rest and relaxation. But maybe they want to do it cheaply.
In full disclosure, CHH stock is a volatile asset. The rate of increase over the past year was less than 3%. No, we're not talking about securities that only move forward a little bit every month. Still, the underlying company is surprisingly robust. Aside from missing his EPS in the third quarter, the company met every other quarterly goal last year. Overall, the average positive expected return was 5.1%.
Analysts expect the company's EPS to reach $6.38 for the current fiscal year. This is a significant improvement over last year's result of $6.11. Additionally, revenue is expected to reach $1.6 billion, an increase of 3.7% from last year's $1.54 billion. Thanks to its relevance, CHH could be one of the best travel stocks to buy in April.
Southwest Airlines (LUV)
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Boosting the risk-reward factor of the best travel stocks to buy in April brings discount airliners southwest airlines (New York Stock Exchange:love). Fundamentally, and even without recent context, this story makes perfect sense. Those who prioritize new experiences will likely want to focus on the experience rather than the flight itself. Therefore, buying a discounted flight ticket seems like a reasonable idea.
However, Southwest relies heavily on: boeing (New York Stock Exchange:BA). And the problem is forcing Boeing to reevaluate its 2024 guidance, as Boeing faces its own set of serious problems. Management said it will release updated forecasts on April 25th. The market is skeptical as it has lost more than 11% in value over the past 52 weeks.
Nevertheless, there is a possibility that the company will release more news than expected. If that happens, LUV stock could skyrocket. And the basic story still stands. If people prioritize travel, they will look for cheap flights.
If anything, LUV trades at just 0.69 times trailing-year earnings. If you don't mind contrarian speculation, it might be worth considering.
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.
