5 Best Travel Stocks To Buy Right Now

In this article, we discuss the 5 best travel stocks to buy right now. To read the detailed analysis of the travel and tourism industry, go directly to the 12 Best Travel Stocks To Buy Right Now.

5. Trip.com Group Limited (NASDAQ:TCOM)

Number of Hedge Fund Holders: 44

Trip.com Group Limited (NASDAQ:TCOM) is a China-based online travel agency. The company operates through its travel fare aggregators and meta-search engines. Trip.com Group Limited (NASDAQ:TCOM) is headquartered in Shanghai, China, and operates worldwide.

Trip.com Group Limited (NASDAQ:TCOM)’s stock was owned by 44 hedge funds in the second quarter of 2023, compared to 41 in the previous quarter. Pzena Investment Management owned over 6.57 million shares of the company worth more than $230 million, making it Trip.com Group Limited (NASDAQ:TCOM)’s most prominent hedge fund holder.

4. Royal Caribbean Cruises Ltd. (NYSE:RCL)

Number of Hedge Fund Holders: 45

Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the top cruise operators in the world that operates three famous cruise brands, Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.

Royal Caribbean Cruises Ltd. (NYSE:RCL) is one of the best travel stocks to buy. On October 27, Barclays increased the price target on the stock to $132 from $127 and maintained an Overweight rating, highlighting the company’s increased booking and “management’s new base case for 2024 earnings”.

On October 26, Royal Caribbean Cruises Ltd. (NYSE:RCL) released its Q3 earnings result in which it posted a non-GAAP EPS of $3.85, topping the estimates by $0.46. The company’s revenue jumped 40.5% YoY to $4.2 billion and exceeded the estimates by $140 million.

Royal Caribbean Cruises Ltd. (NYSE:RCL) was mentioned in Ariel Investments’ second-quarter 2023 investor letter. Here is what it said:

“Several stocks in the portfolio had strong returns over the period. Global cruise vacation company, Royal Caribbean Cruises Ltd. (NYSE:RCL), was one of the top 3 performers in the S&P 500 during the quarter. Shares surged following a significant top- and bottom-line earnings beat, as stronger than anticipated consumer demand is driving a record WAVE season. Forward booking trends are also ahead of historical ranges at record pricing. These factors combined with further improvement in onboard spend and solid cost containment led management to increase RCL’s full-year 2023 guidance. We believe the revised revenue and earnings outlook lays the foundation for RCL to exceed its’ three-year strategic imperative, the Trifecta Program.”

3. Delta Air Lines, Inc. (NYSE:DAL)

Number of Hedge Fund Holders: 56

Delta Air Lines, Inc. (NYSE:DAL) is one of the top airlines in the U.S. and one of the best travel stocks. The company is one of the oldest airlines in the world and provides its services in 60 countries and for more than 300 destinations.

On October 12, Delta Air Lines, Inc. (NYSE:DAL) posted its Q3 non-GAAP EPS of $2.03 which topped the analysts’ estimates by $0.08. The company also outperformed the revenue estimates by $360 million and its revenue increased by 10.8% YoY to $15.49 billion.

On October 13, JPMorgan analyst Jamie Baker maintained an Overweight rating on Delta Air Lines, Inc. (NYSE:DAL) stock and lowered the price target to $68 from $71, citing the Q3 earnings report as a good start to the season.

Delta Air Lines, Inc. (NYSE:DAL) was mentioned in Patient Capital Management’s second-quarter 2023 investor letter. Here is what it said:

“We like other names mostly ignored by the market for similar reasons. Names like Expedia (EXPE), General Motors (GM) and Delta Air Lines, Inc. (NYSE:DAL). These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”

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

Number of Hedge Fund Holders: 57

Expedia Group, Inc. (NASDAQ:EXPE) is one of the biggest travel tech companies in the world and does its business through Expedia.com, Triago, Hotels.com, Travelocity, Orbitz, Wotif, AirAsia, and Vrbo.

The number of hedge funds with a stake in Expedia Group, Inc. (NASDAQ:EXPE) went down from 62 in Q1 to 57 in Q2, according to Insider Monkey’s database. However, the total hedge funds investments grew from $2.07 billion in Q1 to $2.14 billion in Q2. Paul Reeder And Edward Shapiro’s PAR Capital Management was the most prominent stakeholder of the company in Q2 with 3.4 million shares worth $371.926 million.

Patient Capital Management talked about Expedia Group, Inc. (NASDAQ:EXPE) in its second quarter 2023 investor letter. Here is what it said:

“We like other names mostly ignored by the market for similar reasons. Names like Expedia Group, Inc. (NASDAQ:EXPE), General Motors (GM) and Delta Air Lines. These companies have strong returns on capital (14%+), good competitive positions, cheap valuations (all double-digit free cash flow yields), and are returning capital to shareholders. We trust the managements to take advantage of their depressed stock prices and create long-term shareholder value.”

1. Booking Holdings Inc. (NASDAQ:BKNG)

Number of Hedge Fund Holders: 78

Booking Holdings Inc. (NASDAQ:BKNG) is a travel technology corporation that engages in business through many well-known brands, namely, Booking.com, Priceline.com, Agoda.com, Rentalcars.com, KAYAK and OpenTable, Inc.

On October 23, HSBC started coverage of Booking Holdings Inc. (NASDAQ:BKNG) stock with a Buy rating and a price target of $3,650.

After lockdown restrictions were lifted in China, a boom in travel demand is being witnessed. To benefit from the resurgence of demand, Agoda.com, a subsidiary of Booking Holdings Inc. (NASDAQ:BKNG), has announced a collaboration with Meituan, on October 23, in which both companies will exchange resources like supply chain management, product offerings, travel technology, data intelligence, and more. The two corporations also launched “Chinese Preferred” hotels around the world in more than 1,000 locations which will focus on the needs of Chinese travelers.

Booking Holdings Inc. (NASDAQ:BKNG) was mentioned in Wedgewood Partners’ third-quarter 2023 investor letter. Here is what it said:

“Booking Holdings Inc. (NASDAQ:BKNG) also contributed to portfolio performance during the quarter. The Company reported continued healthy travel demand during the quarter that ended in June, with accelerating trends into July. In addition, Booking’s alt-accommodations sub-segment (about 35% of Booking’s total room nights) reported +11% room night growth, in-line with the Company’s largest pure-play alt-accommodations competitor, Airbnb. We estimate Booking’s total alt-accommodation room nights per quarter are approaching parity with Airbnb, yet Booking has a vastly superior GAAP operating margin structure – even as Booking aggressively outspends Airbnb on merchandising and payment functions, as well as paid search marketing efforts. There is still plenty of room for Booking to take wallet share in consumer travel budgets, which are still pent-up from the pandemic, particularly outside the United States.”

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