Are The Travel Stocks Still Winners?

Audio Length: 00:34:44

Which Booking Sites Do You Use?

There’s plenty of hotel and airfare booking sites out there. But three big names stand out.

TripAdvisor Inc. (TRIP - Free Report) is known for its reviews of hotels and restaurants but you can book hotel and excursions on it as well. Shares are up a whopping 79% year-to-date and even have momentum over the last 3 months despite the stock market weakness. The company has just launched a new website that incorporates social media features. Do you use TRIP to plan your travel?

Booking Holdings (BKNG - Free Report) is and Priceline, among others. Shares are trading at 20x forward earnings. It’s still expected to grow earnings in the double digits this year and next. Is it still the industry leader in online hotel bookings?

Expedia (EXPE - Free Report) still has the name recognition which many online travelers flock to. Do you check several online sites for the best deals? Or are you loyal to one brand? Earnings are expected to jump 18.5% in 2019.

Cruises, Hotels and Timeshares

Wall Street is worried. With fears of a recession gaining momentum, travel is usually the first thing cut from the budget.

But is the panic overdone?

Investors should take a look at the cruise operators like Royal Caribbean (RCL - Free Report). It trades with a forward P/E of just 11.8.

The publicly traded hotel chains, including the small, niche chains, should also be on the list.

Airlines continue to add routes to Mexico and the Caribbean. Mexico, in particular, remains one of the most popular destinations for travelers in the world.

Playa Hotel & Resorts (PLYA - Free Report) operates 20 resorts in Mexico and the Caribbean, including the popular Royal Playa del Carmen, in downtown Playa del Carmen in Mexico’s Riviera Maya, as well as the Jewel resorts in Jamaica.  

Shares are down nearly 40% year-to-date.

Disclosure: I own shares of BKNG in my own personal portfolio.

Disclaimer: Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the  more

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