Yahoo Finance 3 Stocks That Could Benefit from a Hot Summer Season
Summer has arrived, with consumers looking to take full advantage of the warmer months. As we’re all aware, consumers typically go on vacations, engage in outdoor activities, and spend cash on other discretionary items throughout the period.
And, of course, several companies are looking to capitalize on spending habits throughout the summer, including Booking Holdings BKNG, Airbnb ABNB, and Dick’s Sporting Goods DKS.
Let’s take a closer look at each.
Booking Holdings Sees Solid Demand
Booking Holdings is one of the largest online travel companies in the world. The company's travel-related offerings include hotel rooms, airline tickets, rental cars, vacation packages, cruises, 'things to do' at customer destinations, and travel insurance.
The company has enjoyed positive earnings estimate revisions for its current fiscal year, with the current $178.54 Zacks Consensus EPS estimate up nicely from the $175.05 per share estimate in early March.
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Booking’s quarterly results have been positive lately, reporting a 9% increase in room nights booked in its latest quarterly release. Gross travel bookings overall reached $43.5 billion, 10% higher than the same period last year. The company’s sales growth has remained consistent over the years, with the trajectory reflecting seasonal trends.
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Growth is expected to remain positive, underpinned by its Style Score of ‘A’ for Growth. Consensus expectations for its current fiscal year presently suggest 18% EPS growth on 8% higher sales.
Travelers Keep Flocking to Airbnb
Airbnb’s leading platform provides a marketplace for connecting hosts and guests online to book spaces and experiences. The company’s unique platform has allowed it to enjoy considerable sales growth over the years, posting double-digit percentage year-over-year revenue growth rates in each of its last ten quarters.
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Like BKNG, the company has seen its current year outlook shift bullish, with the $4.66 Zacks Consensus EPS estimate up nicely from the $4.30 expected near early May. Shares saw a nice reaction post-earnings following its latest print, with ABNB beating consensus EPS expectations by nearly 80%.
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The company continues to see solid demand, with a gross booking value of $22.9 billion in the above-mentioned quarter growing 12% from the year-ago period. Nights and experiences booked totaled a strong 132.6 million, up nearly 10%.
Dick’s Sporting Goods Raises Outlook
Dick’s Sporting Goods, a current Zacks Rank #2 (Buy), is a significant omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, fishing, tennis, golf, water sports, etc.
The stock has been a big-time winner in 2024, gaining roughly 58% and widely outperforming relative to the general market. Shares are now cruising at all-time highs, flashing a bullish signal.
Image Source: Zacks Investment Research
The company raised its current year outlook thanks to robust demand, with it also continuing to gain market share thanks to a strong product pipeline from its key brand partners.
Bottom Line
Summer has arrived, with consumers looking to travel and spend on vacations and other outdoor-related equipment.
Several companies could benefit from a hot summer season, a list that includes Booking Holdings BKNG, Airbnb ABNB, and Dick’s Sporting Goods DKS.
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DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report
Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
Airbnb, Inc. (ABNB) : Free Stock Analysis Report
