If you feel that you’ve been clocking in more hours at the office than before, you’re not alone. According to data compiled by TheNation.com, one-third of Americans work 45 hours or more a week. And nearly 10 million of us work more than 60, a truly unholy number. Because of this grueling collective schedule, demand for vacation stocks to buy will likely increase.
In the corporate America of yesteryear, taking a vacation often meant employees had to negotiate with their higher ups. Now, the stigma about taking consistent vacations has lessened considerably. Scientific studies indicate that vacations help reduce stress. Furthermore, they can help prevent heart disease, one of the leading causes of death.
As well, vacations improve worker productivity. After all, you’re not much good to your employer if you’re dead. Thus, vacations are beneficial across the board, making stocks to buy in this sector even more valuable and relevant.
In addition, technology is playing a greater role in how we plan and spend our downtime. As you know, companies like Amazon (NASDAQ:AMZN) have improved our lives through convenience and time savings. Other companies have stepped up, forwarding solutions for various life functions. This too bolsters the case for vacation stocks to buy.
Finally, like Nancy Pelosi, we can take a page (literally) out of President Donald Trump’s playbook. Real GDP is up. Unemployment is down, way down. And something that has a direct impact on vacation stocks to buy: currently, it’s a job-seeker’s market. People are loving life and that bodes well for this space.
So, grab your travel guide and your sunscreen and check out these nine vacation stocks to buy.
Disney (DIS)
If we’re going to have a discussion on vacation stocks, then we’ve got to mention Disney (NYSE:DIS). A global favorite, Disney’s brand is almost genetically ingrained in humanity. I’m not just saying that to “talk up” DIS stock. According to USA Today, the Magic Kingdom at Disney World “was the world’s most-visited theme park in 2018.”
That’s not the only reason to love DIS stock. Disney-branded resorts dominate the top four spots. And the number three or four slots are properties in Tokyo, demonstrating Disney’s international prowess.
Of course, the “House of Mouse” is more than just theme parks. According to market research firm Piplsay, 37% of Americans have subscribed to Disney+, while 36% have unsubscribed to competing platforms after joining the Magic Kingdom.
Comcast (CMCSA)
Entertainment giant Comcast (NASDAQ:CMCSA) has always butted heads with Disney, most notably with their fierce bidding war for 21st Century Fox. Disney may have won that war, but that doesn’t mean CMCSA stock isn’t worth consideration among vacation stocks to buy.
For one thing, Comcast owns the very powerful Universal brand. Through it, the parent company owns the extremely popular Universal Studios theme parks, located in Osaka, Japan, as well as Orlando, Florida and the world-famous Hollywood version. The latter has seen a substantial uptick in attendance following President Trump’s election.
Second, while no one can truly compete with Disney’s Star Wars franchise, Universal isn’t a slouch in this arena. Its “Fast and Furious” series is starting to rival Jason Voorhees in terms of sequels and spinoffs. These movies might be stupid, but they’re potential gold for CMCSA stock.
Uber Technologies (UBER)
Next to Amazon, I can’t think of a tech service platform that has changed my daily activities more so than Uber Technologies (NYSE:UBER). I assume most folks have bought UBER stock because it disrupted the taxi industry. But in so doing, Uber created an entirely new industry, ride sharing. It’s also a vital cog in the burgeoning gig economy.
But what does this tech disrupter have to do with vacation stocks to buy? Quite simply, more people, particularly the younger crowd, are willing to use the ride-sharing platform for their vacation plans.
For me, though, UBER stock has a massive upside pathway due to easing international travel. Because the platform is centralized and drivers have an economic incentive, you don’t get the fraudulent schemes that you would from traditional taxis.
Alphabet (GOOG, GOOGL)
Tech behemoth Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) gives you many reasons to consider adding Google stock to your portfolio of stocks to buy. First, there’s the dominance in search engines. Second, the company has made huge inroads in cloud computing. Third, it’s developing next-generation innovations, such as driverless taxis or quantum computers.
But as a candidate for vacation stocks to buy? Actually, Alphabet’s Google is flexing its muscles in the online travel industry and it has several established competitors worried. In fact, Expedia (NASDAQ:EXPE) took a beating in November of last year due to disappointing bookings.
If you’re thinking about investing in the travel industry, you may want to forget direct players. Instead, jump aboard GOOGL stock. The underlying company simply has too many synergies to lever.
SeaWorld Entertainment (SEAS)
For many years, SeaWorld Entertainment (NYSE:SEAS) has entertained families throughout the country and even the world. In fact, the SeaWorld brand was so powerful that it steadily attracted more visitors immediately following the Great Recession.
But then a shocking documentary called “Blackfish” exposed a lurid history of animal abuse. Shortly after the documentary was released, public outrage negatively impacted the company. As attendance shrank, so did the market value of SEAS stock.
However, in recent years, attendance has started to pick back up. Also, SEAS stock has found new life. I think this is the case where time heals many wounds, along with management’s efforts to correct wrongs. Given its distinct standing among theme-park related stocks to buy – it’s entertainment along with an education experience – SeaWorld has a convincing recovery narrative.
Southwest Airlines (LUV)
Some folks love the journey more than the destination. Others just want to get to their vacation as soon as possible. In this latter case, there’s no better option than air travel. And right now, Southwest Airlines (NYSE:LUV) and LUV stock offer perhaps the most stable investment in this space.
Making headlines almost on an hourly basis is the coronavirus outbreak. At time of writing, the virus has infected 34,000 people, resulting in 722 deaths. The vast majority of these cases are in China, which hasn’t helped international transportation-related companies. However, as an airliner mostly flying domestic routes, LUV stock has found an exemption.
Furthermore, Southwest’s international flights are situated in Central America or the Caribbean. As long as the outbreak doesn’t spread on our side of the planet, LUV stock should remain relatively unscathed.
Winnebago Industries (WGO)
The automobile has been part and parcel of modern American life. Therefore, it’s no surprise that recreational vehicles have always been popular. However, one of the stereotypes is that RVing is for families or old folks. However, that trend is changing noticeably, which augurs well for companies like Winnebago Industries (NYSE:WGO).
To my surprise, a Statista survey revealed that among consumers interested in buying an RV, most of them were young. Specifically, they fell under the 18 to 29-year-old category. Those who were ages 50 to 64 represented the age demographic least likely to buy an RV. If you’re a stakeholder of WGO stock, this is exactly what you want to see.
Furthermore, other observations confirm the Statista survey. Due to rising housing costs along with massive student loan debt, young millennials don’t have the same financial aspirations as prior generations. RVing is a much more affordable pursuit, thus making WGO stock a compelling buy.
Lindblad Expeditions (LIND)
After a while, vacations tend to be cookie-cutter affairs. For those who are tired of sharing selfies at the Eiffel Tower – which everybody and their dog has – they head on over to Lindblad Expeditions (NASDAQ:LIND). Unlike other tour guides, Lindblad specializes in extreme, far-flung locations, making LIND stock unique among vacation stocks to buy.
As one of only few ways regular people can visit Antarctica, Lindblad allows the adventurous type a once-in-a-lifetime experience. Or, if you want hard evidence that the earth is spherical, this may be a good place to start.
That said, one drawback for LIND stock is that the underlying service is very expensive. However, with the economy ticking up – especially for rich folks – Lindblad might be a surprise hit for 2020.
Norwegian Cruise Line (NCLH)
Among vacation stocks, few have experienced the kind of chill that Norwegian Cruise Line (NYSE:NCLH) has. This has more to do with the coronavirus’ impact on the industry as opposed to anything specifically related to NCLH stock. Nevertheless, the damage has been done. Shares are off to a rough start to the new year.
I can’t blame investors for being skittish on NCLH stock. Because of the confined environment of a cruise ship, a contagious disease can spread rapidly. One of the worrying headlines is the case of the Diamond Princess cruise liner, which the Japanese government quarantined due to an outbreak of the coronavirus.
Naturally, this has given a black eye to the industry. Nevertheless, cruises are incredibly popular vacation choices. Plus, this virus should be a non-recurring event. Thus, longer term, NCLH stock is a discounted buy.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.
