Is It Comeback Season for Hotel, Travel, Cruise and Airline Stocks?

Investing

Published: April 9, 2020 12:25 pm

Hotel, travel, cruise and airline stocks have been punished the worst by the coronavirus outbreak. However, with markets starting to pick up again, and the S&P 500 on track to have its best week (albeit truncated) since 1974, there might be a light at the end of the tunnel for these devastated industries.

Thursday morning, the Federal Reserve announced that it would be pumping an additional $2.3 trillion into lending facilities to help distressed businesses. While most of this money is earmarked for smaller firms, it appears that an economic recovery is underway as the coronavirus infection curve is flattening.

Dr. Anthony Fauci, a key member of the federal government’s coronavirus task force, is predicting that deaths will be significantly less in the United States, according to his models. New York Governor Andrew Cuomo has noted a flattening of the curve in his state, the epicenter of the pandemic in the United States.

Considering all this positive news flow, markets are responding in a way that a return to normalcy (or at least a new normal) may be in the cards sooner than later. As a result, these once battered industries are picking back up.

The prices of hotel, travel, cruise and airline stocks are somewhat reflective of the money they are currently pulling in, hence the catastrophic drop over the past months. But prices are also reflective of the revenues and earnings generated in the future, so with a quicker return to normalcy, these companies can get back on track. This is what we’re seeing in the price action Thursday for these stocks.

24/7 Wall St. has picked out some of the biggest names in the hotel, travel, cruise and airline industries and detailed a brief trading history and the general consensus among analysts. Here’s a snapshot of how these stocks are faring on Thursday.

Hotels

Marriott International Inc. (NASDAQ: MAR) shares were last seen up about 3.5% at $85.36, in a 52-week range of $46.56 to $153.39. The consensus price target is $99.48.

Park Hotels & Resorts Inc. (NYSE: PK) stock was up over 8% to $8.67. It has traded within a range of $3.99 to $33.02 over the past year. The consensus price target is $15.31.

Wyndham Hotels & Resorts Inc. (NYSE: WH) shares were up 6% at $35.29. The consensus price target is $52.00, and the 52-week range is $14.50 to $63.66.

Hyatt Hotels Corp. (NYSE: H) stock was up nearly 5% at $53.87, with a 52-week range of $24.02 to $94.98. The consensus price target is $62.09.

Travel

Expedia Group Inc. (NASDAQ: EXPE) shares were up about 3.5% to $62.81, in a 52-week range of $40.76 to $144.00. The consensus price target is $106.22.

Booking Holdings Inc. (NASDAQ: BKNG) shares traded up nearly 4% to $1,423.05. The consensus price target is $1,717.11, and the 52-week range is $1,107.29 to $2,094.00.

TripAdvisor Inc. (NASDAQ: TRIP) stock was up nearly 4% to $18.10. Shares have traded in a range of $13.73 to $56.60 over the past year. The consensus analyst target is $28.61.

Cruise

Carnival Corp. (NYSE: CCL) stock was up nearly 10%, at $13.17 in a 52-week range of $7.80 to $56.04. The consensus price target is $30.91.

Royal Caribbean Cruises Ltd. (NYSE: RCL) stock was up over 11% to $41.89. It has traded in a range of $19.25 to $135.32 over the past year. The consensus price target is $84.08.

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) shares were up about 16%, at $13.54 in a 52-week range of $7.03 to $59.78. The consensus price target is $34.62.

Airlines

American Airlines Group Inc. (NASDAQ: AAL) stock traded up over 13% to $12.83. It has traded within a range of $9.09 to $35.24 over the past year. The consensus price target is $17.05.

Delta Air Lines Inc. (NYSE: DAL) shares were about 6% higher, at $24.68 in a 52-week range of $19.10 to $63.44. The consensus price target is $43.95.

United Airlines Holdings Inc. (NASDAQ: UAL) stock was up over 15% at $31.82. Shares have traded within a range of $17.80 to $96.03 over the 52 weeks. The consensus analyst target is $55.04.

Southwest Airlines Co. (NYSE: LUV) stock was up nearly 6% at $36.25. The 52-week range is $29.15 to $58.83, and the consensus price target is $45.86.

JetBlue Airways Corp. (NASDAQ: JBLU) shares traded up about 7% to $9.71, with a 52-week range of $6.61 to $21.65. The consensus price target is $15.25.

24/7 Wall St.
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