Travel stocks to watch as the US lifts restrictions

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Travel stocks to watch as the US lifts restrictions

 Travel stocks to watch as the US lifts restrictions
Image source: REDPIXEL.PL,Shutterstock

Highlights

  • American Airlines Group Inc’s (NASDAQ: AAL) revenue surged over 182% YoY in Q3, FY21.

  • The operating revenue of United Airlines Holdings, Inc. (NASDAQ: UAL) was up 211% YoY in Q3.

  • The Southwest Airlines Company’s (NYSE: LUV) total operating revenue jumped 161% YoY in Q3.

The travel industry is upbeat after President Joe Biden lifted the previous covid restrictions on foreign travelers from nearly three dozen countries, including China and India, effective Nov 8.

The travel companies were among the hardest hit in the Covid-19 pandemic.

Delta Air Lines CEO Ed Bastian said travelers would initially face long lines at the airports as the routes reopen. US Travel Association president Roger Dow also expressed similar concerns and said he is worried about how border officials would manage the sudden increase in traffic.

Travel stocks to watch as the US lifts restrictions

US Homeland Security Secretary Alejandro Mayorkas said the government is prepared for the travel rush during the holiday.

Here we explore five travel stocks that may benefit from the Biden order.

Also Read: Coca Cola (KO), Kraft Heinz (KHC) raise outlook after Q3 results

Delta Air Lines, Inc. (NYSE: DAL)

Delta Air Lines is one of the major US airlines based in Atlanta, Georgia.

The shares of the company traded at US$39.255 at 1:36 pm ET on October 27, down 1.15% from their closing price of October 26. The stock value increased by 2.53% YTD.

It has a market cap of US$25.18 billion and a forward P/E one year of -8.67. Its EPS is US$-0.13.

The 52-week highest and lowest stock prices were US$52.28 and US$28.74, respectively. Its trading volume was 8,951,153 on October 26.

The total operating revenue was US$9.15 billion in Q3, FY21, compared to US$12.56 billion in the same quarter of fiscal 2019. Its net income came in at US$1.21 billion, or US$1.89 per diluted share, against US$1.49 billion, or US$2.31 per diluted share in Q3 of 2019.

Also Read: Thermo Fisher (TMO), Boston Scientific (BSX) lift guidance after Q3 results

Travel stocks: DAL, AAL, BKNG, UAL, LUV

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American Airlines Group Inc. (NASDAQ: AAL)

American Airlines is a holding company based in Fort Worth, Texas. It provides cargo and passenger transportation services.

The stock was priced at US$19.18 at 1:51 pm ET on October 27, down 1.12% from its previous close. The AAL stock rose 28.16% YTD.

Its market cap is US$12.40 billion, and the forward P/E one year is -2.23. Its EPS is US$-5.50.

The stock saw the highest price of US$26.09 and the lowest price of US$10.63 in the last 52 weeks. Its share volume on October 26 was 31,007,870.

The revenue increased by 182% YoY to US$8.96 billion in Q3, FY21. Its net income was US$169 million against a loss of US$2.39 billion in Q3, FY20.

Also Read: Boeing (BA) posts modest profit on 737 MAX deliveries, services growth

Booking Holdings Inc. (NASDAQ: BKNG)

Booking Holdings is a travel technology company based in Norwalk, Connecticut. It provides online travel and restaurant reservation, and other related services.

The shares of the company traded at US$2451.02 at 2:02 pm ET on October 27, up 0.33% from their previous closing price. Its stock surged 12.89% YTD.

The firm has a market cap of US$100.53 billion, a P/E ratio of 243.62, and a forward P/E one year of 58.35. Its EPS is US$10.05. The 52-week highest and lowest stock prices were US$2,540.00 and US$1,589.00, respectively. Its trading volume was 175,463 on October 26.

It will release its third-quarter results on Nov 3.

The total revenue of the company was US$2.16 billion in Q2, FY21, compared to US$630 million in the same quarter of the previous year. It reported a net loss of US$167 million, against an income of US$122 million in Q2, FY20.

Also Read: GM sees sharp fall in Q3 revenue, upbeat on full-year results

United Airlines Holdings, Inc. (NASDAQ: UAL)

United Airlines is one of the leading airline companies based in Chicago, Illinois. It provides transportation services for passengers and cargo.

The stock was priced at US$46.34 at 2:10 pm ET on October 27, down 0.96% from its previous closing price. The UAL stock ticked up 12.39% YTD.

Its market cap is US$14.99 billion, and the forward P/E one year is -3.34. Its EPS is US$-10.58.

The stock saw the highest price of US$63.70 and the lowest price of US$32.16 in the last 52 weeks. Its share volume on October 26 was 9,345,532.

The company's total operating revenue surged around 211% YoY to US$7.75 billion in Q3, FY21. Its net income was US$473 million against a loss of US$1.84 million in Q3, FY20.

Also Read: Visa (V) beats profit estimate; Robinhood (HOOD) monthly users jump 76%

 

Travel stocks to explore after Biden lifted travel restrictions for international travelers
Source: Pixabay

Also Read: Top stocks with digital asset exposure to keep an eye on

Southwest Airlines Company (NYSE: LUV)

Southwest Airlines is one of the major US airlines based in Dallas, Texas. It offers services in various locations globally.

Its shares traded at US$47.13 at 2:17 pm ET on October 27, down 0.97% from its previous closing price. The stock rose 5.66% YTD.

It has a market cap of US$27.87 billion and a forward P/E one year of -18.52. Its EPS is US$-0.05. The 52-week highest and lowest stock prices were US$64.75 and US$37.48, respectively. Its trading volume was 6,975,027 on October 26.

Its total operating revenues jumped 161% YoY to US$4.67 billion in Q3, FY21. Its net income was US$446 million, or US$0.73 per diluted share, versus a loss of US$1.15 billion, or US$1.96 per diluted share in the same quarter of the previous year.

Also Read: Alphabet Inc (GOOGL), Microsoft Corp see profits soar in Q3

Bottomline

The Dow Jones US Travel & Tourism index surged 4.51% YTD while increasing 1.77% QTD. The travel industry is making a steady comeback after mass vaccinations.

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