The travel industry rebounded after suffering a significant blow during the pandemic.
Travel stocks are seeing great upward momentum so far in 2024 as the pent-up demand increases travel spending and revenue for the major players.
Financial Analyst at Trading.Biz, Joel Lim, has uncovered what he believes to be the two best travel stocks to buy this year for tasty returns. There is no better time to capitalize on the booming travel industry as it makes it return to the forefront of the global economy.
You want to get your hands on the two stocks ASAP: Uber and Expedia. They are two of the biggest names in travel, and their impressive financials and growth prospects earn them this spot.
Uber (UBER)
The ridesharing giant is not what you may typically think of when it comes to travel stocks, but we can assure you that Uber is almost guaranteed to be part of anybody’s vacation or trip. Uber has not always had the most stable profit margin as it constantly invests in technology improvements.
However, in their 2023 financial report, Uber announced some encouraging numbers for investors. Year-over-year, bookings grew 19%, and revenue grew 17% in 2023. Uber also reached a free cash flow of over three-quarters of a million dollars in Q4.
Joel Lim comments, “Uber has stabilized and is fully capable of taking full advantage of the growing travel industry, already reaching new heights this year.” Uber hit a new record-high price at the beginning of March amidst the positive outlook and strong guidance it reported for 2024.
Uber is exploring many partnerships and setting its foundation deep in travel, and there is no better time to buy this rideshare giant as it continues on its path of steady growth.
Expedia (EXPE)
Expedia is a top online travel service provider, offering hotels, flights, and trip planning features through its web/mobile platforms. With Expedia’s market share and presence within the travel industry, an increase in travel naturally means Expedia is showing some great numbers, easily staying above the S&P 500 average.
Just last year, Expedia reported a 10.28% revenue growth year-over-year. Investors will also be pleased that Expedia reached an adjusted EPS of $1.72 in Q4, beating estimates. Expedia further invested in its share value, spending a record $2 billion to repurchase shares in 2023.
Expedia is doing a stellar job staying on top of the current demand to put its service ahead of competitors. Joel Lim comments on Expedia’s continued AI investments: “Expedia is on board the generative AI bandwagon, making smart investments in a ChatGPT-powered chatbot to elevate its users’ travel experience.”
