Yahoo Finance I’m an Investing Expert: Buy These 7 Stocks Set To Soar During Summer Travel Season
The summer travel season has picked up over the last few years with the world returning to normal. According to the Federal Reserve Bank of New York, almost one-third of American families took a vacation last summer, a record-high number since 2015. When the summer travel season hits, spending increases as families look for things to do, and some companies will report higher earnings.
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This is why we will look at stocks worth investing in since they may soar this summer travel season. Here’s what the experts had to say about buying stocks before the summer travel boom.
What To Look Out For When Choosing Stocks
According to investing experts, there are a few key elements to look for in stocks that will soar during the summer travel season.
Look Out For Seasonal Trends
“Many real estate-related stocks are great options worth investing in because of the summer travel season, said Seamus Nally, CEO of TurboTenant.
The experts pointed out that you’ll want to consider investing in the industries that tend to boom during summer travel. While you may naturally think of hotel and airline companies, other businesses will also benefit. For example, with more people out traveling, they require a ride to get around, or they may have to find activities to do with the kids.
“The food service and hospitality industries undoubtedly have a high season during the summer vacations,” said Mike Darkowski, founder and CEO of Scrab. “The boom for trips actually begins in the spring and varies depending on the destination.”
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Think of Industries That Are Returning
If you’re looking for a stock expected to grow, you’ll want to find companies rebounding to pre-pandemic-level business. This is why you may want to think about cruise lines or travel platforms that saw a decline when people stopped traveling in 2020. With families enjoying more summer travel, you could see many stocks soar this season as these companies finally report higher earnings.
What Stocks Should You Invest In During the Summer?
What are 10 stocks set to soar during the summer travel season? We will look at what the company does, why they’re expected to grow over the summer and the stock price as of closing on April 25.
1. Airbnb, Inc. (ABNB)
As the summer travel season approaches, more people will likely use Airbnb to book accommodations. With many global events happening this year, Airbnb is expected to benefit greatly from all the travel.
“Summer travel means sites like these are peaking in the amount of business they are pulling in and profits they are making, especially since these types of short-term rentals have become incredibly normalized for travel,” Nally said.
With a current share price of $163.01 and a projected price of $200 due to some analysts who believe the company could profit from the Olympics, this could be a decent investment this summer.
2. The Walt Disney Company (DIS)
“With a rich history that stretches across many years, Disney manages a wide range of enterprises, including film and amusement parks,” Darkowski said. “The recent venture into streaming platforms, along with the revival of its theme parks after the pandemic, is set to fuel growth in 2024. Thus, this particular stock is a stable option worth betting on this summer.”
Shares of Disney are currently worth $112.77, and projected price predictions are that the stock can cross over $116 at least.
3. Booking Holdings Inc. (BKNG)
The investing experts agreed that this platform is worth investing in since it’s one of the world’s largest marketplaces for travel. Darkowski mentioned that this stock could rise regardless of vacations, but the summer travel season definitely helps.
“Booking’s diversity in the travel and luxury market should help, as should its entry into the growing Asia-Pacific region,” said Scott Lieberman, founder of Touchdown Money. “Any time a company enters an untapped market with money, it’s usually a good sign.”
The share price is currently $3,502.48, but projections are that it could reach $4,000 within a year.
4. Carnival Corporation & plc (CCL)
Darkowski pointed out that Carnival has just returned to pre-COVID-19 revenue, and it’s strongly coming out for the summer season.
“Carnival is a high-risk, high-reward stock, as much of its debt is coming due in the next two years,” Lieberman said. “However, it’s set to become profitable again as cruising becomes more accepted in the post-COVID era. As people’s fears subside, cruise lines will likely begin to bring in profits again.”
The price of a share is $15.18, and analysts believe it could cross the $20 mark within a year.
5. Redfin Corporation (RDFN)
“Redfin is another investment opportunity to consider, as summer is also peak homebuying season, and many people travel during this time to look for a new home,” Nally said.
With a share price of $5.18, many analysts feel that this stock could increase in value over the summer to cross the $6 mark, as there are hopes that interest rate cuts will bring more homebuyers back into the mix.
6. Uber Technologies (UBER)
As people travel more during summer, they’ll rely on ride-share companies to get around. The investing experts agreed that people would have to use Uber to get to their destinations and that they may rely on food delivery as well.
The current share price is at $69.31 and analysts believe that it could cross the $80 mark within a year since the company that kicked off the gig economy has experienced a momentum swing. Uber ended 2023 by reporting $37.3 billion in revenue, and many believe the summer will be busy for the company.
7. Southwest Airlines (LUV)
“Southwest has consistently resisted bag fees and fare cutbacks as other airlines introduced basic economy fares,” Lieberman said. “Customers have enjoyed that, and the airline is likely to reap the rewards as travel stabilizes.”
As summer travel picks up, families will likely have to book flights to get to their destinations, and this stock has a chance of soaring. You could make some money with a current share price of $27.27 and a projected price of $30.50.
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