Wall Street’s favorite travel and leisure stocks going into summer
A collection of travel-related stocks will likely be key beneficiaries as warm summer months arrive and as consumers start to go off on beach and mountain vacations. While the Invesco Dynamic Leisure and Entertainment ETF (PEJ) has lagged the broader S & P 500 in 2024, analysts are bullish on several stocks inside the fund, including Las Vegas Sands and Marriott Vacations . The PEJ has ticked up 4.8% this year, while the S & P 500 has climbed 11%. PEJ YTD mountain The Invesco Dynamic Leisure and Entertainment ETF (PEJ). CNBC Pro scanned FactSet data to search for stocks with buy ratings from at least 55% of analysts, with average price targets implying 20% or more upside ahead. Most companies that made the cut are in the Invesco leisure ETF, while others were added to provide a broader universe of companies. Shares of casino operator Las Vegas Sands have fallen 8.5% so far in 2024. However, analysts think the operator of resorts and casinos in Macao and Singapore has plenty of runway. More than 77% of analysts polled by FactSet maintain a buy rating on Las Vegas Sands, with their share price targets implying nearly 40% upside ahead. LVS YTD mountain Las Vegas Sands stock. Seaport Securities, for example, initiated research coverage on Las Vegas Sands in April with a buy rating, with analyst Vitaly Umansky highlighting long-term growth opportunities in Macao and Singapore. Umansky also lauded Las Vegas Sands’ generation of free cash flow that can be used to buy back stock. Marriott Vacations also made our screen. The timeshare stock has added about 8 % in 2024 after struggling in 2022 and 2023. Nearly 56% of analysts polled by FactSet maintain a buy rating on Marriott Vacations, with consensus price targets calling for a 22% gain ahead. VAC YTD mountain Marriott stock. The company surpassed Wall Street’s first-quarter estimates for revenue and profit earlier in May. Marriott Vacations also reiterated forward financial guidance of adjusted, full-year EBITDA of $760 million to $800 million, while analysts polled by FactSet expected about $778 million. JMP Securities analyst Aaron Hecht said in February that Marriott Vacations “remains our favorite brand affiliate for the timeshare industry given the quality of the associated customers and product,” initiating coverage of the stock with a market outperform rating. Similarly, Hilton Grand Vacations , another timeshare business, has added almost 3% in 2024. Analysts forecast more than 36% upside in the coming year, while more than 71% have a buy rating on Hilton Grand. HGV YTD mountain Hilton Grand Vacations stock. “The pro forma company provides an opportunity for investors to gain exposure to the attractive timeshare business model at a relatively (and absolute) attractive valuation level, which can gain operating momentum in the second half of 2024 through 2025,” JPMorgan analyst Ryan Lambert wrote last month, initiating research coverage with an overweight rating alongside a $59 per share price target, implying about 43% upside. Other leisure and entertainment stocks that turned up on the CNBC screen include ticketing firm Eventbrite and Madison Square Garden Sports .
FactSet Research Systems Inc,Hilton Grand Vacations Inc,Las Vegas Sands Corp,Madison Square Garden Co,Eventbrite Inc,Marriott Vacations Worldwide Corp,PowerShares Dynamic Leisure & Entertainment Portfolio,Markets,Investment strategy,business news
#Wall #Streets #favorite #travel #leisure #stocks #summer