#7 - Disney (NYSE:DIS)
Last, but certainly not least, on our list of travel stocks to buy is Disney (NYSE:DIS) which continues its recovery from the pandemic. For the last year, I’ve viewed Disney as a “yeah but” stock. It goes like this.
Bulls would point out a bullish indicator like a rising subscriber base for Disney+ the company’s streaming service. That would be met with “Yeah, but the parks aren’t open”.
The company’s movie studios are releasing one blockbuster after another, and many of them can go direct-to-streaming. Yeah but the cruise lines aren’t sailing.
Both sides have a point. Disney is a sum-of-its-parts stock. The emergence of Disney+ was certainly a gift for the company in the early days of the pandemic. But for investors to get bullish about DIS stock the company needs to be hitting on all cylinders. That day appears to be coming. That’s the biggest reason why investors should look beyond the current valuation and lean into revenue and earnings that are projected to increase over the next five years.
About Walt Disney
The Walt Disney Company operates as an entertainment company worldwide. It operates through three segments: Entertainment, Sports, and Experiences. The company produces and distributes film and television video streaming content under the ABC Television Network, Disney, Freeform, FX, Fox, National Geographic, and Star brand television channels, as well as ABC television stations and A+E television networks; and produces original content under the ABC Signature, Disney Branded Television, FX Productions, Lucasfilm, Marvel, National Geographic Studios, Pixar, Searchlight Pictures, Twentieth Century Studios, 20th Television, and Walt Disney Pictures banners.
Read More - Current Price
- $110.73
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 19 Buy Ratings, 6 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $123.58 (11.6% Upside)
According to the U.S. Travel Association, travel spending in December 2021 was $92 billion. That was just 2% below the money spent prior to the pandemic. And the organization says that number tends to grow 2% to 4% annually.
While the outlook for travel stocks looks bullish, investors may not see that growth reflected in revenue and earnings until the second half of the year. And some analysts are cautioning that the recovery will not be complete until we see a recovery in both business and international travel.
In the short term it may be a good idea to put some of these and other travel stocks on your watch list and look for opportunities to buy them at a favorable price. And if you would rather not invest in individual stocks, you can look into travel and tourism-focused ETFs. Two ETFs to consider are the ETFMG Travel Tech ETF (NYSEARCA:AWAY) and the U.S. Global Jets ETF (NYSEARCA:JETS).
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