Top Travel Stocks: Orbitz (OWW)
Headquartered in Chicago, Orbitz Worldwide (OWW) is best known for operating online travel booking website Orbitz.com. This website alone facilitates 1.5 million flight searches and one million hotel searches each day! On top of this, the company also operates online travel companies CheapTickets and ebookers in Europe.
Living up to its ticker symbol, OWW shares took a beating in late 2013 after the company missed Q2 and Q3 earnings estimates by a wide mile. The stock developed a reputation as being heavily shorted and the stock price plunged. However, lately travel booking site has started to turn itself around by investing in improving its airline-ticket business and accelerating its shift to mobile technologies. Last quarter, the company reported a profit of $0.05 per share, blowing away analyst’s break-even estimates.
Looking ahead to this quarter, the company is expected to post a loss of $0.02 per share, but the consensus estimate keeps rising. All told, this year the company is expected to earn $0.36 per share, and the following year that estimate widens to $0.47 per share. So I’m becoming more convinced that what was once a cautionary stock for the travel industry is going to turn heads in 2014. And at less than $10 a share, there’s little chance of sticker shock here. OWW is a B-rated Buy.
The key takeaway I want to leave you with is that there’s no need to be afraid of low-priced stocks. As long as you do your proper research and use every tool at your disposal (like my Portfolio Grader stock screener), there are plenty of profit opportunities in this arena.