Will these 5 travel stocks survive as Delta variant saps confidence?

Highlights

  • Las Vegas Sands Corp’s (NYSE: LVS) net revenue was US$1.17 billion in Q2, FY21.
  • Booking Holdings Inc’s (NASDAQ: BKNG) net loss was US$167 million in Q2, FY21.
  • Royal Caribbean Cruises (NYSE: RCL) total revenue was US$50.91 million in Q2, FY21.

The travel sector has faced serious challenges since the global outbreak of the Covid-19 pandemic last year. The lockdowns and travel restrictions have taken a toll on the industry. People are cautious before making any travel plans, although vaccinations increased. The emergence of the Delta variant has cut short the industry’s optimism of a speedy recovery.

Typically, the travel sector losses pace in late summer as schools reopen after the holiday break before picking up again in the run up to the festive season in the winter.

Here we look at five travel or travel-related stocks in the market.

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Booking Holdings Inc (NASDAQ: BKNG)

Booking Holdings Inc. is a technology-driven travel company based in Norwalk, Connecticut. The company provides travel and tourism-related services.

The stock was priced at US$2291.97 at 9:48 am ET on September 13, down 0.56 percent from the previous close. The BKNG stock rose 6.5 percent YTD.

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Its market cap is US$95.02 billion, the P/E Ratio is 230.27, the forward P/E one year is 54.56, and its EPS is US$10.05.

The stock’s 52-week highest and lowest stock prices were US$2,516.00 and US$1,589.00, respectively. Its share volume on September 10 was 242,163.

Booking Holdings Inc’s total revenue rose by 243 percent YoY to US$2.2 billion in Q2, FY21. Its net loss was US$167 million compared to a net income of US$122 million in Q2, FY20.

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Airbnb, Inc. (NASDAQ: ABNB)

Airbnb is a holiday rental company based in San Francisco, California. It offers lodging services. 

The ABNB stock traded at US$157.08 at 9:56 am ET on September 13, down 4.92 percent. The stock gained 18.72 percent YTD. Its market cap is US$95.37 billion, and the forward P/E one year is -688.33. The stock’s 52-week highest and lowest prices were US$219.94 and US$121.50, respectively. Its share volume was 3,985,251 on September 10.

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The company's revenue was US$1.33 billion in Q2, FY21, compared to US$334 million in the year-ago quarter. Its loss from operations was US$51.27 million, compared to a loss of US$583.21 million in the same quarter of the previous year. The company reported a net loss of US$68.21 million, compared to a loss of US$575.58 million in Q2, FY20.

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Walt Disney Company (NYSE: DIS)

Walt Disney Company is a mass media and entertainment company headquartered in California. The company runs theme-and-amusement parks globally.

The stock was priced at US$183.75 at 10:13 am ET on September 13, down 0.20 percent from the previous closing price. The DIS stock surged 3.62 percent YTD. Its market cap is US$335.12 billion, the P/E ratio is 302.34, the forward P/E one year is 75.15, and its EPS is US$0.61.

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The 52-week highest and lowest stock prices were US$203.02 and US$117.23, respectively. Its share volume on September 10 was 5,572,248.

The company's revenue rose 45 percent YoY to US$17.02 billion in Q3, FY21. Its net income from continuing operations was US$923 million, or US$0.50 per diluted share, compared to a loss of US$4.71 billion, or a loss of US$2.61 per diluted share in Q3, FY20.

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Las Vegas Sands Corp. (NYSE: LVS)

Las Vegas Sands Corp. is headquartered in Las Vegas, Nevada, and it is a resort and casino company. Its stocks traded at US$42.62 at 10:24 am ET on September 13, up 1.86 percent from its previous closing price. The stock value fell 27.8 percent YTD. The firm has a market cap of US$32.29 billion, and a forward P/E one year of -55.79. Its EPS is US$-1.74.

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The highest and lowest stock prices in the last 52-week were US$66.77 and US$36.42, respectively. Its share volume was 7,063,239 on September 10.

The net revenue of the firm was US$1.17 billion in Q2 of fiscal 2021, compared to US$62 million in the year-ago quarter. It reported an operating loss of US$139 million, compared to a loss of US$757 million in the prior year's second quarter.

The company reported a net loss of US$242 million, compared to US$985 million in Q2, FY20.

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Source: pixabay

Royal Caribbean Cruises Ltd. (NYSE: RCL)


Royal Caribbean Cruises is based in Miami, Florida. It is one of the world’s leading cruise operators. The stock of the company was priced at US$82.39 at 10:33 am ET on September 13, up 1.02 percent from its previous close. The RCL stock jumped 15.33 percent YTD.

Its market cap is US$20.47 billion, and the forward P/E one year is -4.93. Its EPS is US$-22.33.

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The 52-week highest and lowest stock prices were US$99.24 and US$51.33, respectively. Its share volume on September 10 was 3,082,659.

The total revenue was US$50.91 million in Q2 FY 2021 against US$175.60 million in the year-ago quarter. Its operating loss was US$1.02 billion compared to a loss of US$1.28 billion in Q2, FY20. The company’s net loss was US$1.34 billion against a loss of US$1.63 billion in Q2 of FY20.

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Bottomline

Many travel and airline companies have lowered their earnings forecast for the next quarter and the fiscal full-year due to concerns over the delta variant. The Dow Jones US Travel and Tourism Index fell 1.66 percent YTD and 5.56 percent QTD. However, many analysts are optimistic about the sector’s recovery with increased vaccinations.

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