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Highlights
- The upcoming US holiday season is expected to see around 48.3 million travelers.
- The Transportation Security Administration (TSA) recorded about 2.21 million air passengers on Nov 21 alone, hitting the 2-million mark for the fourth consecutive day.
- The government’s plans to tap its strategic oil reserves may help lower the gasoline prices which will benefit the travelers.
The travel industry was one of the worst-hit sectors during the lockdown. While it saw some improvement in recent months, it is still not out of the woods. Travel stakeholders are hoping to capitalize on the upcoming holiday season, the period leading up to the New Year.
According to the Transportation Security Administration (TSA), there has been a rush of travelers for both air and road trips during Thanksgiving week. The agency recorded around 2.21 million air passengers on Nov 21 alone, Reuters reported.
Industry observers expect 13% more road travelers this year compared to 2020. Around 48.3 million travelers are expected to hit the roads compared to 47.1 million in 2020.
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Here we explore seven top stocks in the travel, hotel, entertainment industry.
Delta Air Lines, Inc. (NYSE:DAL)
YTD return – fell 2.06%
The Atlanta, Georgia-based Delta Airlines has a network of more than 300 flight destinations and operates in more than 50 countries.
Its revenue was US$9.15 billion and net income was US$1.21 billion for the September quarter of 2021. Its cash and equivalents were US$8.79 billion as of September 30, 2021.
Its operating revenue from the passenger segment increased massively to US$7.19 billion in the quarter from 1.94 billion in the same period a year ago.
Its market capitalization is US$25 billion. The stock closed at US$39.77 on November 22, 2021.
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GXO Logistics, Inc. (NYSE:GXO)
IPO came in July 2021 (return 80% since IPO)
The Greenwich, Connecticut-based GXO Logistics is a contract logistics company and earns revenue from warehousing, distribution, e-commerce, supply chain services, order fulfillment, reverse logistics, etc.
For the September quarter of 2021, its revenue was US$1.97 billion and net income was US$72 million, with an EPS diluted of US$0.62.
It has a market capitalization of US$11.19 billion, with a forward P/E one year of 51.26.
GXO stock closed at US$103.03 on November 22, 2021.
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Scientific Games Corp (NASDAQ:SGMS)
YTD return – 59.29%
The Las Vegas, Nevada-headquartered company provides gaming products, systems, and services. The offerings are for the lottery and pari-mutuel industries.
For the September quarter, 2021, the company earned revenue of US$408 million and net income of US$182 million, with an EPS diluted of US$1.84.
It has a market capitalization of US$6.36 billion, with a P/E ratio of 36 and forward P/E one year of 34.38. The SGMS stock closed at US$67.38 on November 22, 2021.
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Hilton Grand Vacations Inc. (NYSE:HGV)
YTD return – 67.78%
The Orlando, Florida-based Hilton Grand is a timeshare company engaged in marketing and selling vacation ownership intervals (VOI) and manages urban destinations and leisure resorts. It also operates a points-based vacation club.
The company earned revenue of US$928 million and a net income of US$99 thousand in the September quarter of 2021. Its market capitalization is US$6.3 billion and forward P/E for one year is 28.41. The stock closed at US$52.55 on November 22.
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Red Rock Resorts, Inc. (NASDAQ:RRR)
YTD return – 104.51%
The Las Vegas, Nevada-based gaming and recreational toys company develops in casinos and entertainment properties.
For the three months ended September 30, 2021, it earned revenue of US$414 million and net income of US$71 million. Its cash and equivalents were US$90 million as of Sep 30, 2021.
RRR has a market cap of US$3.29 billion, with a P/E ratio of 31.48 and a forward P/E one year of 15.19. Its current dividend yield is 0.84% with an annualized dividend of US$0.40.
RRR stock closed at US$47.85 on November 22, 2021.
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Source – pixabay.com
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Atlas Air Worldwide Holdings NEW (NASDAQ:AAWW)
YTD return – 73.41%
The Purchase, New York-headquartered transportation company provides outsourced aircraft and aviation operating services.
The company owns passenger aircraft and a fleet of freighters. Its customers are the military, freight forwarders, charter brokers, airlines, and express delivery providers.
The company earned revenue of US$1.02 billion and net income of US$119.5 million in the quarter ended September 30, 2021. Its operating income was US$183.9 million, and cash and cash equivalents were US$784 million at the end of the quarter.
Its market capitalization is US$2.73 billion. Its P/E ratio is 5.67, and its forward P/E ratio for one year is 5.32. The stock closed at US$92.56 on November 22.
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United Airlines Holdings, Inc. (NASDAQ:UAL)
YTD return – 7.84%
The Chicago, Illinois-headquartered United Airlines is one of the largest airlines in terms of scheduled revenue passenger miles.
It earned US$7.75 billion in revenue and US$473 million in net income for the September quarter, 2021. The cash and equivalent at the end of the quarter were US$19.5 billion.
UAL has a current market capitalization of US$15 billion. The stock closed at US$46.48 on November 22, 2021.
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Bottomline
Given the upcoming holiday season, the government has decided to tap into its strategic oil reserves to provide some relief to people struggling from the rising gasoline prices. Oil prices have been rising due to limited supplies from producing nations, including OPEC.
