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HomeTrading News2 Surprising Charts Show What’s Next for Travel

2 Surprising Charts Show What’s Next for Travel

Back in March of 2020, I took a trip with my friends to St. Augustine, Florida.

It was the beginning of spring break. That’s when towns like St. Augustine get swamped with partiers from around the country.

But once we got there, the town was almost empty.

As COVID-19 cases climbed, people were spooked enough to put off their vacations.

Over the next few months, I heard about friends and family postponing the trips they had planned for the year.

2021 wasn’t any better, with concerns over the delta and omicron variants.

However, this year is different.

In particular, I’ve found two surprising charts that show that travel isn’t dead.

And it means exciting things are ahead for the industry…

Americans Are Comfortable With Travel Again

As I set out to write this article, I dove into research mode.

One of the key things I look at when judging a travel-sector recovery is sentiment.

Ultimately, people won’t travel if they don’t feel safe or confident enough.

This year, the sentiment around travel is very positive. That’s a big change from even just the start of 2022.

According to a weekly survey by Morning Consult, 71% of Americans feel comfortable going on vacation.

That’s up 15% from the start of this year.

Check out the chart below. While Gen Z is the most comfortable traveling, adults in general are ready to get away.

(Source: Morning Consult.)

Americans also feel much more comfortable with every type of transportation on their vacations.

(Source: Morning Consult.)

Most notably, for the first time since the beginning of the pandemic, over 50% of respondents felt comfortable flying.

As you can see from these two charts, the travel industry is set to come roaring back. And that means opportunities for investors.

Pent-Up Demand for Travel Is Boosting the Sector

It’s not just sentiment that’s improving.

This comfort with travel is helping companies in the sector.

Just take a look at recent news from some big airline operators:

United Airlines raised its revenue forecasts for the second quarter.
American Airlines is investing in its training centers to battle the current pilot shortage.
Lufthansa is bringing back nonstop flights to Europe from smaller U.S. cities.

And it’s not just airlines. Others in the sector, such as booking sites, ride-sharing companies and hotels, are also hopping on this trend.

Travel sites like Expedia are spending more on marketing and advertising vacation deals. And hotel chains like Marriott and Best Western are ramping up hiring worldwide.

This gives us plenty of options when it comes to investing in the recovery of travel.

Check out Ian King’s Strategic Fortunes service for some great ways to profit from the rebound in this sector.

Regards,

Andrew Prince

Research Analyst, Strategic Fortunes

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Limoneira Co. (Nasdaq: LMNR) operates an agribusiness company that primarily focuses on the production of citruses and avocados. The stock climbed 19% after the company managed to beat second-quarter estimates thanks to increased revenues for avocados, oranges and specialty citruses.

New Oriental Education & Technology Group Inc. (NYSE: EDU) provides private educational services under the New Oriental brand in China. The stock is up 17% after analysts at UBS upgraded the stock from a neutral to a buy rating and raised its price target.

MediciNova Inc. (Nasdaq: MNOV) develops novel and small molecule therapeutics for the treatment of serious diseases with unmet medical needs. The stock rose 14% after the company posted promising data from a study of its COVID-19 treatment candidate.

Arcellx Inc. (Nasdaq: ACLX) develops various immunotherapies for patients with cancer and other incurable diseases. It is up 14%, continuing its climb from earlier in the week when it reported positive data from a study of its novel treatment for patients with relapsed or refractory multiple myeloma.

Grab Holdings Ltd. (Nasdaq: GRAB) provides apps for ride-sharing, delivery, financial services and enterprise offerings in southeast Asia. It is up 14% after it launched GrabMaps, a new service that can tap into the $1 billion market opportunity in Southeast Asia for mapping and location-based services.

Roku Inc. (Nasdaq: ROKU), the TV streaming platform is up 12% this morning. The stock is moving on rumors from Roku employees that Netflix could be gearing up to acquire the company.

DraftKings Inc. (Nasdaq: DKNG) operates a digital sports entertainment and gaming company. It is up 12% on a rebound after falling Tuesday, although there is no significant news to report.

Alibaba Group Holding Ltd. (NYSE: BABA), the Chinese e-commerce giant, is up 12% today. The stock is responding to positive moves from Chinese regulators that further signals that they are easing the crackdown on Chinese tech stocks.

Intellia Therapeutics Inc. (Nasdaq: NTLA) is a genome editing company that focuses on the development of various therapeutics. The stock is up 11% as investors anticipate positive data from soon to be released updates on the company’s treatment for transthyretin amyloidosis.

Iovance Biotherapeutics Inc. (Nasdaq: IOVA) develops cancer immunotherapy products that harness the power of a patient’s immune system to eradicate cancer cells. The stock rose 11% after analysts at JMP Securities reiterated their buy rating on the stock.

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