- Inspirato (ISPO) stock is trading near its 52-week low.
- Yet, the company is demonstrably in expansion mode.
- Investors should add Inspirato to their watch list, as a share-price recovery could be powerful if it happens.
Denver-headquartered Inspirato Incorporated (NASDAQ:ISPO) specializes in providing luxury travel experiences through a subscription-based business model. However, you don’t need a luxury-size account to afford ISPO stock because it is quite cheap now.
Two years after the onset of Covid-19, it is a great time to consider investing in the recovery of the hospitality market. Inspirato appears poised to benefit from a pick up in travel demand and contrarian investors can buy shares now while they’re still inexpensive.
Still, some onlookers might want to pigeonhole ISPO stock as a meme stock, as it may have been a target of Reddit users. That is unfortunate since Inspirato is a high-potential company irrespective of the stock’s former meme status.
Indeed, there is evidence that Inspirato is breaking its own records in multiple measurable areas. Not only that, but the company is expanding its portfolio of luxury experiences, thereby adding value for customers and shareholders alike.
What’s Happening with ISPO Stock?
In February, ISPO shot up from $10 to exactly $108 in just a few days. Even if you like Inspirato as a company, it is difficult to justify a share price move of that magnitude. It would be difficult to prove that Reddit traders were directly responsible for the wild run-up of the Inspirato share price. Yet, it’s certainly a possibility. Traders who bought during the hype phase were punished for their haste.
ISPO returned to $10 in March. Today, it trades for $6 and some change. This suggests a bargain if you have researched Inspirato and found that the share price deserves to be higher. Even if the stock returns to $20, that would represent an excellent return on investment.
Besides, the evidence points to a thriving business for Inspirato. For instance, the company recently announced its 2023 Inspirato Only luxury cruise program, which features eight custom voyages spanning five continents.
Inspirato co-founder and Chief Executive Officer Brent Handler commented that “cruises are back,” and declared that the 2023 Inspirato Only cruise program “makes it easy” for the customers “to travel with confidence.”
In addition, Inspirato just revealed a collaboration with East West Partners. As a result of this partnership, 11 luxury residences at the Charleston, South Carolina property 71 Wentworth will be added to the Inspirato controlled accommodation portfolio. Handler explained:
“Combined with our Inspirato accommodations in Kiawah, Savannah, Palmetto Bluff, and Hilton Head, we continue to build an impressive array of luxury vacation options in the Southeast.”
Clearly, Inspirato is growing as a business. How is Inspirato doing from a financial perspective, though?
As the data reveals, Inspirato is firing on all cylinders. We’re talking about company-record-breaking results here. As of Dec. 31, 2021, Inspirato’s total active subscriptions, pass subscriptions, annual recurring revenue, and controlled accommodations all finished at the highest levels in the company’s history. Furthermore, citing strong demand for travel, Inspirato reported $235 million in revenue for 2021. That’s up 42% compared to 2020’s result.
Focusing on 2021’s fourth quarter (Q4), we can find even more impressive results for Inspirato. In particular, the company’s Q4 2021 revenue of $68 million marked a 71% year-over-year increase. Not only that, but Inspirato’s full-year 2021 cash flow from operations totaled $29 million. This figure represents a whopping 148% improvement compared to full-year 2020’s cash flow from operations.
What You Can Do Now
Earning a “B” in my Portfolio Grader, Inspirato is demonstrating that America’s luxury travel market is improving compared to 2020. The company is expanding its controlled accommodation portfolio, while also posting impressive financial results.
At the same time, Wall Street doesn’t seem to appreciate the upside potential for ISPO stock. This presents a buying opportunity for contrarian investors. A share price doubling could even be in store this year.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.