Corey Mergenthaler's  Instablog

Corey Mergenthaler
Send Message
  • Will These Stocks Have You Travelling to Higher Profits? 0 comments
    Mar 19, 2011 2:00 PM | about stocks: EXPE, PCLN, OWW, TZOO

    WIth the summer upon us, and the economy recovering, many Americans will be looking to travel in the near future.  With the declining economy over the past few years, many Americans chose a 5 hour drive to the beach over a 4 hour flight to Vegas.  However with the economy improving, it is expected that more vacationers will choose that flight to Vegas, or the Caymans, or even Europe this summer.  In fact a recent Orbitz survey of 3,000 travelers shows that 36% of those surveyed say they will spend more on leisure travel in 2011, while 42% say they will spend the same, and 90% said they had planned to take two or more leisure trips in 2011. 

    There are a few ways to play the increase in leisure travel.  I think by far the best way is to play the travel sites such as Expedia (NASDAQ:EXPE), Orbitz (NYSE:OWW) Travel Zoo (NASDAQ:TZOO) or the kingpin Priceline (NASDAQ:PCLN).  I personally am a fan of the recently beaten up Expedia inc. (EXPE).  The company owns the flagship website expedia.com, but also tripadvisor.com, hotels.com and hotwire.com.  Expedia had previously traded between $25-$29 a share, until disappointing 4th quarter earnings dropped the stock to below $20.  I think the current price of $21.50 is still an easy buy.  Expedia will obviously benefit from the increased vacation travel, and also has an opportunity for global growth, with many of their sites launching localized international travel sites.  With travel on the rise, and growth potential, I think Expedia is certainly a stock to watch for in the coming months.

    Disclosure:  I am currently in a long position with Orbitz (OWW), and had recently held a position with Expedia inc. (EXPE).

    Stocks: EXPE, PCLN, OWW, TZOO
Back To Corey Mergenthaler's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.