3 "Strong Buy" Travel Stocks for a Post-Pandemic World

It appears as though the pandemic is finally coming to an end. As long as the coronavirus vaccines prove effective and are available to the masses this winter and spring, the virus should eventually fizzle out.

The virus may be an afterthought by this time next year. The question is which stocks are best positioned to benefit from the end of the pandemic.

Below, we provide a look at three “Strong Buy” stocks positioned for success in the post-pandemic world: Uber Technologies (UBER), Expedia Group (EXPE), and Extended Stay America (STAY).

Uber Technologies (UBER)

Rideshare services will be quite popular once society returns to normal. The economy will be firing on all cylinders and people will be venturing out to clubs, bars, and restaurants. This is precisely what UBER needs to fulfill its potential.

Though American politicians’ push to require Uber to treat drivers similar to employees rather than independent contractors is certainly concerning, Uber has not placed all of its eggs in the United States basket. The company also has a presence in other countries ranging from those in Europe to Asia, the Middle East, Latin America, and Canada.

The POWR Ratings show UBER has "A" grades in the Peer Grade, Trade Grade, and Buy & Hold Grade components. Of the 19 analysts who have studied the stock, 17 insist it is a “Buy”, two consider it a “Hold” and none advise selling.

It will be interesting to see how UBER evolves from here moving forward, especially if the pandemic comes to an end this spring. UBER could focus on food delivery, the transition toward driverless vehicles, or simply keep chugging along on its current path.

Expedia Group (EXPE)

As one of the largest online travel businesses in existence, EXPE clearly stands to benefit from the pandemic’s end. EXPE facilitates the travel experience in several regards, providing travel planning, purchases, and more. In short, EXPE is the bridge that connects travelers to those who provide travel services. EXPE should pop as soon as positive results emerge from the initial round of vaccinations.

Take a look at the EXPE POWR Ratings and you will find the stock has "A" grades in the Industry Rank, Trade Grade, and Buy & Hold Grade components. EXPE is ranked 11th of 59 stocks in the Internet category. The mere fact that EXPE has climbed above its pre-virus trading price in this past month is proof that the stock is poised for new heights now that society is starting to return to normal.

It is also worth noting EXPE has Vrbo, a private vacation rental website in the fold, meaning those who want to bypass hotels will still help EXPE rake in the cash. If you are concerned about investing in EXPE, consider the fact that it has a $5.5 billion cash balance that nearly balances out its $6 billion long-term debt.

Extended Stay America (STAY)

It is in your interest to invest in the country’s largest owner/operated of hotels. STAY is that company. All in all, STAY has over 630 hotels in the United States. The POWR Ratings show STAY has "A" grades in the Buy & Hold Grade and Trade Grade components along with "B" grades in the Industry Rank and Peer Grade components.

STAY is ranked fourth of 14 stocks in the Travel - Hotels/Resorts category. The analysts are bullish on STAY, setting an average price target of $15.50, meaning there is more than 11% upside. Of the six analysts who have performed a deep dive into STAY, five consider it a “Buy”, one considers it a “Hold” and none advise selling.

UBER shares were trading at $52.57 per share on Thursday morning, down $0.52 (-0.98%). Year-to-date, UBER has gained 76.77%, versus a 15.74% rise in the benchmark S&P 500 index during the same period.

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.

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