5 Travel Stocks to Buy Despite Recession Fears

4. Southwest Airlines Co. (NYSE:LUV)

Number of Hedge Fund Holders: 45

Southwest Airlines Co. (NYSE:LUV) is a San Antonio, Texas-based low-cost carrier.

In late July, Southwest Airlines Co. (NYSE:LUV) announced that it was removing the expiration date from the company’s travel credit points. Previously, the credit used to expire one year after the flight was booked. However, the company had been extending this deadline during the pandemic. This move is expected to act as a great differentiator for Southwest Airlines Co. (NYSE:LUV). On July 29, Helane Becker at Cowen gave Southwest Airlines Co. (NYSE:LUV) stock a target price of $55 with an Outperform rating. The analyst sees an attractive entry point for investors following the recent stock sell-off.

The risk and reward profile for Southwest Airlines Co. (NYSE:LUV) looks attractive at the current level as the company reported a strong Q2 2022. Southwest Airlines Co. (NYSE:LUV) outperformed the revenue and adjusted EPS estimates for the quarter and revealed an “industry-leading” balance sheet. Revenue increased by 67.8% YoY to $6.73 billion and surpassed the consensus forecast of $6.69 billion.

Of the 912 hedge funds in Insider Monkey’s database, Southwest Airlines Co. (NYSE:LUV) was held by 45 funds at the end of Q1 2022.