5 Best Summer Stocks To Buy Now

In this article, we discuss 5 best summer stocks to buy. If you want to read our detailed discussion on the seasonal impact on the stock market, head over to 12 Best Summer Stocks To Buy Now.

5. Expedia Group, Inc. (NASDAQ:EXPE)

Number of Hedge Fund Holders: 62

Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that owns multiple domains such as Hotels.com, CarRentals.com, and CheapTickets. It also sells loyalty programs and offers competitive travel packages. On August 3, Expedia Group, Inc. (NASDAQ:EXPE) reported a Q2 non-GAAP EPS of $2.89, beating Wall Street estimates by $0.53. The revenue of $3.36 billion, however, missed analysts’ expectations by $10 million. Expedia Group, Inc. (NASDAQ:EXPE) is one of the best summer stocks to monitor as leisure travel increases. 

According to Insider Monkey’s first quarter database, 62 hedge funds held a bullish position in Expedia Group, Inc. (NASDAQ:EXPE), as opposed to 65 in the previous quarter. Paul Reeder and Edward Shapiro’s PAR Capital Management held the largest position in the company, with over 3.5 million shares worth $339 million. 

Aristotle Atlantic Core Equity Strategy had this to say aboutExpedia Group, Inc. (NASDAQ:EXPE) in its first quarter 2023 investor letter:

“Expedia Group, Inc. (NASDAQ:EXPE) provides online travel services for leisure and small business travelers. The company offers a wide range of travel shopping and reservation services, as well as provides real-time access to schedule, pricing and availability information for airlines, hotels and car rental companies. Expedia serves customers worldwide.

We see Expedia benefiting from the growth of booking travel online, both for leisure and in corporate travel. The company also benefits from rapid growth in alternative accommodations, vacation home rental, through VRBO. The main sources of revenue and profitability are from hotel and vacation home rental. Additionally Expedia has exposure to airline ticket sales and automobile rentals. Post the COVID-19 pandemic, Expedia’s debt has been reduced and share repurchase has resumed and we would expect a dividend to be reinstated.”

4. Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 63

Airbnb, Inc. (NASDAQ:ABNB) is a household name that has revolutionized the accommodation and lodging industry. The company owns one of the largest platforms that allows users to rent out their properties. This online model has connected tenants and hosts to find cheaper accommodation as compared to hotels. On August 3, Airbnb, Inc. (NASDAQ:ABNB) announced a Q2 GAAP EPS of $0.98 and a revenue of $2.48 billion, topping Wall Street estimates by $0.20 and $60 million, respectively. It is one of the best summer stocks to consider.

According to Insider Monkey’s first quarter database, 63 hedge funds were bullish on Airbnb, Inc. (NASDAQ:ABNB), in contrast to 54 hedge funds in the previous quarter. John Overdeck and David Siegel’s Two Sigma Advisors held the largest position in the company, with over 2.2 million shares worth $269 million.

Artisan Developing World Fund had this to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q1 2023 investor letter:

“Top contributors to performance for the quarter included online travel marketplace Airbnb, Inc. (NASDAQ:ABNB). Airbnb outperformed on the resilience of the travel category including for long-term stays, and on operating leverage as cost optimization is met with revenue increases. Notably, our top four holdings entering the quarter (Sea, Meli, Nvidia, Airbnb) which represented 24.37% of capital on December 31, 2022, increased an average of 64.42% during the quarter.”

3. Hilton Worldwide Holdings Inc. (NYSE:HLT)

Number of Hedge Fund Holders: 63

Hilton Worldwide Holdings Inc. (NYSE:HLT) has been a market leader in the hospitality sector for decades. The company manages resorts and hotels under an ownership and leasing model. Hilton Worldwide Holdings Inc. (NYSE:HLT) is one of the best summer stocks to invest in. On July 26, the company announced a Q2 non-GAAP EPS of $1.63 and a revenue of $2.66 billion, outperforming Wall Street consensus by $0.05 and $100 million, respectively. Hilton Worldwide Holdings Inc. (NYSE:HLT) disclosed that the revenue per available room is expected to increase by 10% for full-year 2023. In addition to that, the company opened 92 new hotels in the second quarter of 2023 and also launched a new project focused on business travelers, in order to cater to the expanding travel market.

According to Insider Monkey’s first quarter database, 63 hedge funds were bullish on Hilton Worldwide Holdings Inc. (NYSE:HLT). This number remains unchanged from the previous quarter. Bill Ackman’s Pershing Square held the biggest position in Hilton Worldwide Holdings Inc. (NYSE:HLT), with approximately 9.3 million shares worth $1.3 billion. 

Pershing Square Holdings specifically said this about Hilton Worldwide Holdings Inc. (NYSE:HLT)  in its Q2 2022 investor letter:

“Hilton Worldwide Holdings Inc. (NYSE:HLT) is a high-quality, asset-light, high-margin business with significant long-term growth potential, led by a superb management team. The unforeseen arrival of the COVID-19 pandemic catalyzed a rapid and near-complete standstill in global travel, with RevPAR (the industry metric for same-store sales at a given hotel) down roughly 90% at the nadir of the pandemic. We increased our investment in Hilton during the pandemic as we believed the economic dislocation from COVID-19 would prove to be transient and that industry projections regarding the timeline for recovery were too pessimistic.

From the moment the pandemic began, Hilton’s management team took decisive actions to ensure the company not only managed through what it knew would be a challenging period, but also positioned the company to generate improved margins, cash flows, and investment returns once the business recovered. In hindsight, Hilton’s experience with COVID-19 – the 100-year proverbial flood – affirmed the company’s unique high-quality, asset light, high-margin business model, and reinforced our belief that Hilton deserves a premium valuation.

While Hilton entered 2022 impacted by the Omicron variant, results have vastly improved throughout the year as COVID-19 has evolved towards a more endemic virus, and consumer behavior has adapted accordingly. In recent months, Hilton’s system-wide RevPAR has surpassed 2019 levels and continues to improve. Recent strength has been led by domestic leisure travel occasions as consumer spending continues to shift from goods to services. …” (Click here to read the full text)

2. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 77

Booking Holdings Inc. (NASDAQ:BKNG) provides hotel reservations, rental car services, ticket comparisons, and caters to all kinds of travel-related consumer needs. As summer travel increases, Booking Holdings Inc. (NASDAQ:BKNG) remains positioned as one of the best summer stocks to buy. On August 3, the company reported a Q2 non-GAAP EPS of $37.62 and a revenue of $5.5 billion, outperforming Wall Street estimates by $8.46 and $330 million, respectively.  

According to Insider Monkey’s first quarter database, 77 hedge funds were bullish on Booking Holdings Inc. (NASDAQ:BKNG), compared to 83 funds in the prior quarter. GuardCap Asset Management held the largest position in the company, comprising 305,759 shares valued at $811 million. 

L1 Capital International Fund had this to say about Booking Holdings Inc. (NASDAQ:BKNG) in its first quarter 2023 investor letter:

“Booking Holdings Inc. (NASDAQ:BKNG) was the largest positive contributor to the March 2023 quarterly performance. We meaningfully added to our investment in Booking in the middle of 2022 when the market was overly focused on disruptions to travel in Europe caused by airport understaffing and other COVID-19 induced inefficiencies, as well as concerns that an economic downturn would materially reduce discretionary travel. Since then, the travel environment has continued to normalize, with China being the last major market to open travel borders post COVID-19. People the world over have demonstrated their ongoing desire to travel, an industry that has historically grown significantly faster than GDP growth. Management has continued to execute a well-planned strategy to increase connections with customers booking accommodation, including offering flights, on ground transport, activities and payment options. After increasing over 20% in the December 2022 quarter, Booking’s share price increased a further 30%+ during the March 2023 quarter. Booking is now trading within our assessed view of fair value. We retain confidence that management will continue to deliver returns to shareholders and Booking remains one of the Fund’s largest holdings.”

1. The Walt Disney Company (NYSE:DIS)

Number of Hedge Fund Holders: 95

The Walt Disney Company (NYSE:DIS) is one of the biggest entertainment companies in the world. The company generates entertainment content under Marvel, Twentieth Century Studios, and Pixar. The Walt Disney Company (NYSE:DIS) also operates theme parks and resorts around the world. In May 2023, The Walt Disney Company (NYSE:DIS) announced a Q1 EPS of $0.93 and a revenue of $21.82 billion. It also reported an increase in the average prices for subscription services – such as ESPN+ and Disney+. The company had previously suspended dividend payouts, following the pandemic in 2020. However, Disney is looking to restore dividends in 2023. It is one of the best summer stocks to watch. 

According to Insider Monkey’s first quarter database, a total of 95 hedge funds were bullish on The Walt Disney Company (NYSE:DIS). During the previous quarter, this number was 99. Nelson Peltz’s Trian Partners held a prominent stake in the company, with 5.9 million shares worth $592.4 million. 

This is what Aristotle Atlantic Partners had to say about The Walt Disney Company (NYSE:DIS) in its Q2 2023 investor letter:

“We sold our position in Disney, as the shift to streaming since the launch of Disney Plus nearly three years ago has been more challenging than expected. Overall company margins have declined, primarily driven by losses in the streaming segment, as Disney Plus strives to attract more subscribers. The focus on growth and profitability in streaming has come at the expense of reduced licensing revenues, as content shifts from the company’s traditional linear networks to Disney Plus. Additionally, Disney is going through this challenging transition amidst upheaval in senior management.”

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