Investing

7 Travel Stocks Suffering After Paris Terror Attacks

Chris Lange

Published: November 16, 2015 11:35 am

Last Updated: January 13, 2020 5:09 pm

It is always a very sad when terrorism strikes. Lives are lost, and freedoms and safety feel threatened. The attacks in Paris have shown yet again that the threat of terrorism remains. Along with that fresh threat has come more uncertainty.

Measuring the financial fallout after a terror attack is often difficult. That being said, the first and immediate fallout can be seen and felt in the travel sector. It turns out that after terror attacks that consumers cancel flights, cancel hotel stays and cancel cruises and resort trips.

24/7 Wall St. has outlined the negative moves in the shares of seven such travel companies. These companies are all very well known, and they were all suffering on Monday after Friday night’s terror attacks in Paris.

Expedia Inc. (NASDAQ: EXPE) operates as an online travel company in the United States and abroad. Undoubtedly it has lost some revenues on canceled trips and reservations. Shares of Expedia were trading down 3% at $121.33 on Monday, with a consensus analyst price target of $148.83 and a 52-week trading range of $76.34 to $140.51. The company has a market cap of almost $16 billion.

Priceline Group Inc. (NASDAQ: PCLN) operates in the same market as Expedia and provides online travel accommodations within the United States and abroad. It is seeing a slightly larger pullback than Expedia. Shares of Priceline were last seen trading down 4% at $1,244.41, with a consensus price target of $1,492.92 and a 52-week range of $990.69 to $1,476.52. The company has a market cap of $62 billion.

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Delta Air Lines Inc. (NYSE: DAL) is one of the major airliners that operates within the United States and abroad. Similar to the attacks on 9/11, the threat of violence or terrorist attacks will pull down airlines. Shares of Delta were down 2.5% at $47.74. The consensus price target is $61.43, the 52-week range of $34.61 to $52.00, and the market cap is $37 billion.

American Airlines Group Inc. (NASDAQ: AAL) operates in the airline space in over 50 countries. With French borders closing and restricting travel as a result of the Paris attacks, this company is going to take a slight cut. Shares of American Airlines were down 2% at $42.56, within a 52-week trading range of $34.10 to $56.20. The consensus price target is $53.69. The market cap is over $26 billion.

Norwegian Cruise Line Holdings Ltd. (NASDAQ: NCLH) operates a cruise line through various subsidiaries. With heightened concerns of terrorist attacks, even this form of transport is facing some pullback. Shares of Norwegian Cruise Line were down 2.7% to $53.72. The consensus price target is $65.71. Shares have traded between $40.95 and $64.27 in the past 52 weeks. The company has a market cap of $12 billion.

Carnival Corp. (NYSE: CCL) is an American cruise line that operates in North America and Europe. Shares of Carnival were last seen down 3% at $49.96, with a consensus price target of $57.29. Its 52-week trading range is $41.19 to $54.59, and its market cap is nearly $39 billion.

Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) is facing pressure with cancelled reservations, despite recent news that rival Marriott plans to acquire it to the tune of just over $12 billion. Starwood Hotels is facing one of the worst swings out of these travel stocks, especially considering the merger, with shares down over 4% at $71.83. The consensus price target is $86.52, and the 52-week range is $63.99 to $87.99. The company has a market cap of $12 billion.

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