The travel sector is off to a rocky start in 2022, with worldwide demand for travel increasing compared to early 2021. Still, tensions from the Russian invasion of Ukraine and growing pandemic cases in China weigh on the recovery. Global foreign visitor trips more than quadrupled in January 2022 compared to January 2021, according to the World Tourism Organization’s data. The rise, which totaled 18 million visits, was more than the growth for the whole year of 2021.
As the summer vacation season approaches, certain travel companies have plenty of potential to rise higher. According to a poll conducted by consulting firm Deloitte, four out of ten Americans want to travel and vacation again in the coming months. Also, by 2023, the World Travel and Tourism Council (WTTC) predicts that worldwide travel will have returned to pre-pandemic levels.
Now, let’s break down three travel stocks forecasted to grow, giving them dependable buy ratings; analysts consider these to be wise additions to our portfolios:Â
Booking Holdings Inc (BKNG)
Booking Holdings, Inc (BKNG) is a company that specializes in online travel and associated services. Booking.com, Priceline, KAYAK, Agoda, OpenTable, and Rentalcars.com, are some of the companies that BKNG offers its services through. It allows you to book hotels, hostels, flats, holiday rentals, and other types of accommodations. Jay Scott Walker created the firm on July 18, 1997, and it is based in Norwalk, Connecticut.
BKNG has shown robust financials. BKNG beat EPS projections by 17.08% and revenue by 4.49% in its last earnings report. BKNG also shows healthy year-over-year growth in several areas, notably revenue growth of 140.79% and diluted EPS growth of 471.89%. BKNG currently shows us $2.5 billion in sales, with an EPS of 85 cents per share for its current quarter. Looking forward, quarterly and annual growth are both forecasted to continue. The consensus price target for BKNG among the analysts that provide 12-month predictions is 2,685.00, with a high of 3,300.00 and a low of 1,889.00. The estimate is up 26.00% from its most recent price, and BKNG comes with a sturdy buy rating from analysts.
Darden Restaurants Inc (DRI)
Darden Restaurants, Inc (DRI) is a full-service restaurant corporation that offers a variety of dining options. Olive Garden, LongHorn Steakhouse, and Fine Dining are DRI‘s three segments. The Olive Garden is the world’s biggest chain of full-service Italian restaurants. The company-owned Steakhouse restaurants are included in the LongHorn Steakhouse category. The Fine Dining division includes DRI’s company-owned The Capital Grille and Eddie V’s restaurants and premium brands operating within the fine-dining sub-category of full-service dining. William B. Darden founded DRI in 1938, and it is based in Orlando, Florida.
Now, on to the numbers. There were a couple of misses regarding DRI’s most recent earnings report, but its financials are otherwise quite solid beyond that. DRI shows an EPS of $2.22 per share for the current quarter, with sales of $2.5 billion. DRI displays year-over-year revenue growth of 41.31% and EPS growth of 96.94%. DRI currently has a dividend yield of 3.37%, providing a quarterly shareholder payout of $1.10 per share. DRI has a consensus price target of 160.00 among the analysts that provide 12-month price estimates, with a high of 180.00 and a low of 139.30. The consensus projection reflects a 22.51% increase from current pricing, and the consensus also gives DRI a trusty buy rating.
Walt Disney Co (DIS)
The Walt Disney Company (DIS) is a global family entertainment and media conglomerate. Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences, and Products (DPEP) are the company’s two segments. DIS‘s global film and episodic television content production and distribution activities are included in the DMED section. Other significant lines of business, such as parks and experiences, as well as consumer items, are included in DIS’s DPEP section. Walter Elias Disney created the corporation on October 16, 1923, headquartered in Burbank, California.
Financially, DIS has, for the most part, had a strong reputation on Wall Street. DIS’s most recent quarterly earnings report exceeded analysts’ projections on EPS by 71.97% and revenue predictions by 4.52%. DIS’s current quarter shows $20.1 billion in sales, with an EPS of $1.19 per share. It impressively offers year-over-year revenue growth of 34.28% and EPS growth of 5,900%. Although DIS doesn’t currently pay a dividend, its stock has displayed momentum. DIS’s earnings trend is also in its favor, as it aims to increase its EPS to $4.44 per share in 2022, up more than 91% from the previous year’s EPS. The median price goal for DIS among the analysts that provide 12-month price projections is 179.50, with a high of 229.00 and a low of 130.00. The consensus projection reflects a 58.08% increase from its most recent price, and analysts give DIS a nearly uncontested buy rating that deserves our attention.Â
