Five travel stocks to watch in June: TH, ARCO, BDL, BOWL & PLYA

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Highlights

  • Target Hospitality Corp.'s (NASDAQ: TH) P/E ratio is 56.6, and the forward P/E for one year is 59.4. 
  • Arcos Dorados Holdings Inc. (NYSE: ARCO) has a P/E ratio of 15.47 and a dividend yield of 2.12%. 
  • Flanigan's Enterprises, Inc.'s (AMEX: BDL) P/E ratio is 5.22, and the dividend yield is 2.76%. 

The travel industry faced strong headwinds in the last two years. Shares of Airbnb, Inc. (ABNB), Walt Disney Co (DIS), Booking Holdings Inc (BKNG) and other companies saw steep losses. However, the sector expects to see more activities with the pandemic restrictions easing. Analysts anticipate the situation to normalize later this year after the widespread disruptions in the industry over the past two years.

 

Here we discuss five travel stocks that gave positive returns in one year.

Target Hospitality Corp. (NASDAQ: TH)

Closing Price on May 23, 2022: US$5.94

Houston, Texas-based Target Hospitality Corp is a vertically integrated specialty rental and hospitality services company. It provides hospitality services, such as food catering, housekeeping, ground keeping, on-site security, and workforce lodge management. 

For the three months ended March 31, 2022, it generated revenue of US$80.34 million, a 77% increase YoY, compared to US$45.49 million in the same quarter a year ago. 

Its net income came in at US$0.494 million or US$0.01 per share diluted compared to the net loss of US$13.16 million or US$0.14 per share diluted in the previous year’s March quarter.

The stock has a market capitalization of US$548.6 million. Its P/E ratio is 56.6, and the forward P/E for one year is 59.4.

The stock traded in the range of US$7.68 to US$2.64 in the last 52 weeks. 

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Arcos Dorados Holdings Inc. (NYSE: ARCO)

Closing Price on May 23, 2022: US$7.49

Arcos Dorados Holdings Inc operates McDonald's-branded restaurants in approximately 20 countries and territories. The Montevideo, Uruguay-based company runs company-operated restaurants and franchisee restaurants. 

For the three months ended March 31, 2022, the company reported consolidated revenue of US$790.6 million compared to US$561.1 million in the previous year. 

The net income attributable to the company came in at US$24.5 million or US$0.12 per share compared to a net loss of US$29.7 million or US$0.14 per share in the March quarter of 2021.  

The stock has a market capitalization of US$1.56 billion. Its P/E ratio is 15.47, and the forward P/E for one year is 18.73. The stock has a dividend yield of 2.12%, with an annualized dividend of US$0.16.

The stock traded in the range of US$8.44 to US$4.33 in the last 52 weeks. 

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Bowlero Corp. (NYSE: BOWL)

Closing Price on May 23, 2022: US$10.79

New York-based Bowlero Corp is a media company. It also operates bowling centers and offers bowling, dining, and nightlife experience.

For the quarter ended March 27, 2022, its revenue was US$257.8 million compared to US$112.2 million in the same quarter a year ago. 

It incurred a net loss of US$20.8 million or US$0.13 per share diluted attributable to common shareholders, compared to the net loss of US$25.10 million or US$0.17 per share diluted in the March quarter of 2021.

On May 23, it announced plans to purchase three bowling centers in Kansas, including The Alley Indoor Entertainment and West Acres Bowling Center. 

The stock has a market capitalization of US$1.63 billion. It has a forward P/E for one year of 7.49. The stock traded in the range of US$13.09 to US$6.96 in one year.

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Flanigan's Enterprises, Inc. (AMEX: BDL)

Closing Price on May 23, 2022: US$35.01

Flanigan's Enterprises operates a chain of cocktail lounges and liquor stores in Florida. It operates in two segments: Restaurants and Package stores segment. Based in Fort Lauderdale, Florida, the company offers beverages, food service, liquor, and related items. 

For the quarter ended April 2, 2022, the company reported revenue of US$40.33 million compared to US$34.36 million in the same quarter in the previous year. 

The net income of the company was US$1.34 million or US$0.89 per share diluted compared to US$5.69 million or US$1.32 per share diluted in the corresponding quarter a year ago.  

The stock has a market capitalization of US$65.6 million. Its P/E ratio is 5.22. BDL stock has a dividend yield of 2.76%, with an annualized dividend of US$1.0.

The stock traded in the range of US$47.85 to US$22.28 in the last 52 weeks. 

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Playa Hotels & Resorts N.V. (NASDAQ: PLYA)

Closing Price on May 23, 2022: US$8.05

Fairfax, Virginia-based Playa Hotels & Resorts NV owns, operates, and develops resorts in beachfront vacation destinations. 

The company reported a revenue of US$219.6 million in the March quarter of 2022 compared to US$77.75 million in the same quarter a year ago. The net income of the company came in at US$42.75 million or US$0.26 per share diluted compared to the net loss of US$69.75 million or US$0.43 per share diluted in the March quarter of 2021.

The stock has a market capitalization of US$1.24 billion. Its P/E ratio is 57.31, and the forward P/E for one year is 25.16. 

The stock traded in the range of US$9.81 to US$6.13 in the last 52 weeks. 

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Bottom line:

The travel industry is expected to see brisk business this year compared to last year. However, this year, the stock market has been volatile due to various macroeconomic and geopolitical factors. Hence, investors should analyze the stock carefully before investing in them. 


 


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