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13 Best Vacation Stocks To Buy Now

In this article, we discuss the 13 best vacation stocks to buy now. If you want to read about some more vacation stocks, go directly to 5 Best Vacation Stocks To Buy Now.

For travel firms, the year 2022 has mostly been about the increase in air passenger bookings and hotel occupancy rates as pandemic restrictions around the world slowly fade into the background and the vacation industry returns to a semblance of normalcy following a two-year gap. However, soaring inflation has continued to keep vacation stocks in check for the past few months. A report by the American Society of Travel Advisors reveals that concerns about inflation have more than doubled among travelers in 2022. 

Some of the best travel stocks to buy in this environment, which can weather this inflation storm better than peers, include Walt Disney Company (NYSE:DIS), Booking Holdings Inc. (NASDAQ:BKNG), and Airbnb, Inc. (NASDAQ:ABNB). Travel Pulse research shows that the average American family is willing to spend $200 per day on vacation plans over the next few months. International travel is also picking up, with 82% people in the US more likely to consider traveling abroad as COVID-19 restrictions are lifted. 

Our Methodology

These companies that tend to benefit from vacation trips were selected for the list. In order to provide readers with some context for their investment choices, the business fundamentals and analyst ratings for the stocks are also discussed. A database of around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to quantify the popularity of each stock in the hedge fund universe. 

Photo by Mesut Kaya on Unsplash

Best Vacation Stocks To Buy Now

13. Carnival Corporation and plc (NYSE:CCL)

Number of Hedge Fund Holders: 24  

Carnival Corporation and plc (NYSE:CCL) operates as a leisure travel company. On August 15, Carnival Corporation & plc (NYSE:CCL) stripped away most COVID restrictions holding back advanced bookings. The cruise line spent the summer fully resuming guest operations, but profits have eluded the company due to startup costs and lower occupancy. The stock is cheap at $10, with full earnings power of $2.50 to $3.00 a share.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Jade Capital Advisors is a leading shareholder in Carnival Corporation and plc (NYSE:CCL), with 150,000 shares worth more than $1.3 billion. 

Just like Walt Disney Company (NYSE:DIS), Booking Holdings Inc. (NASDAQ:BKNG), and Airbnb, Inc. (NASDAQ:ABNB), Carnival Corporation and plc (NYSE:CCL) is one of the best vacation stocks to buy. 

In its Q2 2022 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Carnival Corporation and plc (NYSE:CCL) was one of them. Here is what the fund said:

“Amazingly, some companies like Carnival Corporation & plc (NYSE:CCL) (CCL, which we don’t own) made it back to its March 2020 lows when business was shut down with no sign of return. Carnival already resumed positive operating cash flow generation and disclosed stronger than historical bookings for 2023 at higher prices. The market focused on fear of recession and refinancing risk posed by higher rates.”

12. Wynn Resorts, Limited (NASDAQ:WYNN)

Number of Hedge Fund Holders: 26    

Wynn Resorts, Limited (NASDAQ:WYNN) designs, develops, and operates integrated resorts. Over the past year, Wynn Resorts, Limited (NASDAQ:WYNN) shares have slid in value by 33%. The headwinds relate to Macau operations and are hurting the performance of the firm in the near-term. Reports suggest that COVID-19 restrictions may stay a bit longer in Macau. However, on September 15, Credit Suisse analyst Benjamin Chaike upgraded Wynn Resorts, Limited (NASDAQ:WYNN) stock to Outperform from Neutral with a price target of $117, noting that there was potential upside to Vegas trends driven in part by the convention center expansion.

At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $142.8 million in Wynn Resorts, Limited (NASDAQ:WYNN), compared to 32 in the preceding quarter worth $269 million. 

In its Q3 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Wynn Resorts, Limited (NASDAQ:WYNN) was one of them. Here is what the fund said:

“In the most recent quarter, we exited the Fund’s holdings in Wynn Resorts, Limited (NASDAQ:WYNN) due to: (i) ongoing COVID-19-related travel restrictions in China, Macau, and Singapore; and (ii) the Macau government’s announcement to tighten its casino regulatory oversight.”

11. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)

Number of Hedge Fund Holders: 28     

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) operates as a cruise company. The stock has been among the top gainers on the S&P 500 Index in the past few days in a breakout from the rest of the consumer sector. Based on the 2023 targets, the shares appear cheaply valued even though the company reported a disappointing second quarter due to COVID restrictions limiting passengers.

On August 10, Deutsche Bank analyst Chris Woronka kept a Hold rating on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)  stock and lowered the price target to $16 from $17, noting that analysts saw some positive data points in the second quarter earnings of the firm. 

At the end of the second quarter of 2022, 28 hedge funds in the database of Insider Monkey held stakes worth $287 million in Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH), compared to 35 in the previous quarter worth $539.9 million.

In its Q4 2021 investor letter, Miller Value Partners, an asset management firm, highlighted a few stocks and Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) was one of them. Here is what the fund said:

“Norwegian Cruise Line Holdings Ltd (NCLH) continued to get hit from worsening headlines in relation to the Omicron variant. The stock declined 21.5% during the quarter following worse-than-expected 3Q results. The company reported revenues of $153M below consensus of $247M with EPS coming in at -$2.17 versus expectations for -$2.04. The company reported that 40% of its capacity was operating by the end of 3Q and they expect 75% to be operating by the end of 2021 with the full fleet back up and running by April 1, 2022. They also highlighted that they expect to be operating cash flow positive in late 1Q22 and profitable for the second half of 2022. The company announced a refinancing transaction, issuing $1Bn of new 1.125% exchangeable notes due 2027 and raising another $1.1Bn through the sale of 46.8M new shares at $23.64. Proceeds are being used to redeem up to $1.215Bn of debt with a blended interest rate of 8.1%, implying annual interest savings of $88M” (…read more)

10. Royal Caribbean Cruises Ltd (NYSE:RCL)

Number of Hedge Fund Holders: 28 

Royal Caribbean Cruises Ltd (NYSE:RCL) operates as a cruise company worldwide. On July 18, Royal Caribbean Cruises Ltd (NYSE:RCL) received court approval to acquire the ultra-luxury cruise ship Endeavor, which was originally delivered to Crystal Cruises in 2021. The company has also recently commenced a private offering of $700 million aggregate principal amount of senior unsecured notes due 2027. 

On July 29, Wells Fargo analyst Daniel Politzer kept an Overweight rating on Royal Caribbean Cruises Ltd (NYSE:RCL) stock and lowered the price target to $58 from $81, noting that the company reported revenue and adjusted EBITDA topping Street estimates. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Royal Caribbean Cruises Ltd (NYSE:RCL), with 4.6 million shares worth more than $162 million.

9. Darden Restaurants, Inc. (NYSE:DRI)

Number of Hedge Fund Holders: 32    

Darden Restaurants, Inc. (NYSE:DRI) owns and operates full-service restaurants. The firm comprises nine popular restaurant concepts, including the famous Olive Garden. The scale at which the company operates provides it some form of insulation from a recessionary environment compared to peers. This is important since recession fears are gathering pace at the market as the Fed pushed ahead with rate hikes and inflation keeps climbing. 

On September 16, Barclays analyst Jeffrey Bernstein kept an Overweight rating on Darden Restaurants, Inc. (NYSE:DRI) stock and raised the price target to $137 from $130, noting that casual dining comps decelerated in the first quarter and inflationary pressures remained high. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Darden Restaurants, Inc. (NYSE:DRI), with 1.5 million shares worth more than $167 million.

8. United Airline Holdings, Inc. (NASDAQ:UAL)

Number of Hedge Fund Holders: 35     

United Airline Holdings, Inc. (NASDAQ:UAL) provides air transportation services. On September 18, United Airlines Holdings, Inc. (NASDAQ:UAL) announced a $15 million investment in Eve Air Mobility for the purchase of 200 four-seat electric aircrafts. Airline stocks have come under pressure recently after US President Biden criticized them for delays and cancellations and warned they would now be on the hook for rebooking fees and food under a new infrastructure bill. 

On August 8, Melius Research analyst Conor Cunningham initiated coverage of United Airlines Holdings, Inc. (NASDAQ:UAL) stock with a Buy rating and a price target to $47, noting that United is the first airline to allow customization in the contracting process.

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in United Airline Holdings, Inc. (NASDAQ:UAL), with 7.8 million shares worth more than $278 million.

7. Marriott International, Inc. (NASDAQ:MAR)

Number of Hedge Fund Holders: 46   

Marriott International, Inc. (NASDAQ:MAR) operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. It is one of the elite travel stocks to buy according to hedge funds. At the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $2.7 billion in Marriott International, Inc. (NASDAQ:MAR), compared to 52 in the preceding quarter worth $3.5 billion. 

In its Q2 2022 investor letter, LRT Capital Management, an asset management firm, highlighted a few stocks and Marriott International, Inc. (NASDAQ:MAR) was one of them. Here is what the fund said:

“Marriott is the world’s largest hotel company followed closely by Hilton and Intercontinental Hotels Group plc. The company owns a portfolio of brands from the low end (Courtyard, SpringHill Suites, Aloft), through the mid-tier (Marriott, Sheraton, Westin, Renaissance Hotels), to the luxury high end (JW Marriot, Ritz-Carlton, St. Regis). In total the company had 7,642 properties with over 1.4 million rooms as of the end of Q1 2021 (…read more).

6. Southwest Airlines Co. (NYSE:LUV)

Number of Hedge Fund Holders: 46  

Southwest Airlines Co. (NYSE:LUV) operates as a passenger airline company that provides scheduled air transportation services. At the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $740 million in Southwest Airlines Co. (NYSE:LUV), compared to 45 in the preceding quarter worth $1.1 billion.

In addition to Walt Disney Company (NYSE:DIS), Booking Holdings Inc. (NASDAQ:BKNG), and Airbnb, Inc. (NASDAQ:ABNB), Southwest Airlines Co. (NYSE:LUV) is one of the best vacation stocks to buy. 

Click to continue reading and see 5 Best Vacation Stocks To Buy Now.

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Disclosure. None. 13 Best Vacation Stocks To Buy Now is originally published on Insider Monkey.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

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AI is eating the world—and the machines behind it are ravenous.

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Where will all of that energy come from?

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The “Toll Booth” Operator of the AI Energy Boom

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A New Dawn is Coming to U.S. Stocks

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…