Holiday season

5 Stocks to Buy This Holiday Season Travel Comes Together on Steam – November 2, 2021

The United States is reopening and the holiday season is approaching. After witnessing almost no travel in the past year, millions of Americans are planning vacations again. Thus, the holiday season is likely to give a much needed boost to the travel and tourism industry.

Thanksgiving trip to ride

About 109 million people plan to travel this year for Thanksgiving, according to a new survey from The Vacationer. Among them, 10.5% are likely to travel by plane.

Last year, the Thanksgiving survey showed 29.3% planned to travel to a vacation destination. This year, the figure jumped to 42.4%, marking an increase of 44.6%. Understandably, after putting their travel plans on the back burner, millions of Americans plan to travel and go on vacation this year after the vaccination and the economy reopens.

What’s more, the survey shows that over 20% of people traveling on Thanksgiving plan to spend more than $ 500 on things like hotels, tickets, and flights.

Another Amex Trendex poll shows that at least 47% of respondents intend to travel to a destination this holiday season. Additionally, 77% plan to vacation with their partner this holiday season rather than exchanging gifts.

The holidays are back

According to The Vacationer’s survey, a total of 161 million or 62.7% of Americans are expected to travel this holiday season, which suggests a 45% jump from last year. The margin seems huge given that travel was almost at a standstill last year due to the pandemic.

While fears of the Delta variant of the coronavirus have left many undecided about planning their vacations, the scene is changing rapidly. According to data from the Centers for Disease Control and Prevention (“CDC”), cases of COVID-19 have declined by more than 50% from the recent peak following the spread of the Delta variant.

In addition, this year the vaccination campaign is also in full swing, which was not the case in 2020. With more people vaccinated now, they feel safer to leave their homes and travel. Additionally, personal spending is on the rise, indicating that people on vacation are likely to spend more this time around. Personal spending rose 0.6% in September and 1.6% in the third quarter of 2021.

Our choices

Given this scenario, it would be ideal to invest in stocks that could benefit from increased travel and vacations this holiday season. We have selected five stocks with a Zacks # 1 (strong buy) or 2 (buy) ranking that should benefit in the short term. You can see the full list of today’s Zacks # 1 Rank stocks here.

Intercontinental Hotels Group (IHG Free Report) provides Internet reservation information and capabilities for InterContinental hotels and resorts, Crowne Plaza hotels and resorts, Holiday Inn hotels, Holiday Inn Express hotels, and Staybridge Suites by Holiday Inn hotels.

The company’s expected profit growth rate for the current year is over 100%. Zacks’ consensus estimate for current year earnings has improved 7.5% in the past 60 days. Intercontinental Hotels Group is ranked second in Zacks.

Choice Hotels International (CHH Free Report) is one of the largest hotel franchisors in the world. As of June 30, 2021, the company had 7,111 hotels open, representing nearly 600,000 rooms. This hotel chain is located in 40 countries and territories internationally and is present in 50 states and the District of Columbia.

The company’s expected profit growth rate for the current year is 77%. Zacks’ consensus estimate for current year earnings has improved 3.1% over the past 60 days. Choice Hotels has Zacks # 2 rank.

Pool company (BOWL Free Report) is the world’s largest wholesale distributor of swimming pool supplies, equipment and related products. In addition, the company is one of the leading regional wholesale distributors of irrigation and landscaping products.

The company’s expected profit growth rate for the current year is 80.2%. Zacks’ consensus estimate for current year earnings has improved 6.8% in the past 60 days. Pool Corporation has a Zacks Rank # 1.

Mastercraft Boat Holdings, Inc. (MCFT Free Report) designs, manufactures and markets pleasure boats through its subsidiaries. The company’s operating segment consists of MasterCraft and NauticStar.

The company’s expected profit growth rate for the current year is 18.7%. Zacks’ consensus estimate for current year earnings has improved 11.3% in the past 60 days. Mastercraft Boat wears a Zacks Rank # 2.

RCI Hospitality Holdings, Inc. (GRIND Free Report) owns and operates adult nightclubs that provide live adult entertainment, restaurant and bar services.

The company’s expected profit growth rate for the current year is over 100%. The company’s shares have gained 10.5% in the past three months. RCI Hospitality Holdings has a Zacks Rank # 2.


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