Travel stocks rebound as analysts tell investors to 'buy the dip'
- Travel and leisure stocks are up across the board even after the Biden Administration announced increased international travel restrictions due to the Omicron variant.
- Analysts believe that yesterday's drop was overstated as more information arrives regarding the new variant. JPMorgan said the sell-off presented an "opportunity to buy the dip in cyclicals, commodities and reopening themes," while CNBC's Jim Cramer told investors to buy stocks like Disney (DIS +3.0%) and Wynn Resorts (WYNN +5.9%) before "omicron becomes nothing more than a running nose for the vaccinated."
- According to the Australian Government Department of Health, all patients infected with the Omicron variant so far have reported "very mild" or no symptoms at all. This is in-line with historical trends in which less severe and more transmissible variants crowd out more severe variants, potentially turning COVID-19 into something more like the seasonal flu.
- Airlines: American Airlines (AAL +5.8%) Delta Air Lines (DAL +7.9%), Southwest Airlines (LUV +6.3%), United Airlines (UAL +6.0%), JetBlue (JBLU +7.1%), Hawaiian Holdings (HA +7.5%), Alaska Air Group (ALK +6.5%), Spirit Airlines (SAVE +8.5%), Mesa Airlines (MESA +4.6%), SkyWest (SKYW +6.5%) and Frontier Group (ULCC +3.3%).
- Hotel and lodging: Marriott International (MAR +5.4%), Hyatt Hotels (H +5.1%), Hilton Worldwide (HLT +6.2%), Airbnb (ABNB +2.1%), Wyndham Hotels & Resorts (WH +4.7%), Choice Hotels International (CHH +3.4%) and InterContinental Hotels Group (IHG +3.6%).
- Other travel: Expedia (EXPE +3.1%), Booking Holdings (BKNG +4.4%), TripAdvisor (TRIP +2.2%), Travelzoo (TZOO +3.4%), Trip.com (TCOM +3.1%), Avis Budget (CAR +6.1%), Hertz (HTZ +4.4%), Carnival (CCL +7.6%), Royal Caribbean (RCL +5.7%), and Norwegian Cruise Line (NCLH +5.3%).
- Casinos: Las Vegas Sands (LVS +2.5%), MGM Resorts (MGM +5.2%), Penn National Gaming (PENN +2.7%), Caesars Entertainment (CZR +5.3%), and Melco Resorts & Entertainment (MLCO +3.7%).
- Use Seeking Alpha's screeners to compare the top-rated hotel, resort, and cruise line stocks.