Wealthier consumers are likely to continue to be shielded from macroeconomic challenges. As a result, I expect to watch many successful travel stocks that cater to these consumers to continue to thrive in 2024. Meanwhile, a very well-respected consulting firm, Deloitte, recently wrote that companies will seek a balance between budgeting and the benefits that travel can support.
In my view, companies’ continued interest in using travel to boost their businesses bodes well for the travel sector going forward. Moreover, predicted interest-rate cuts in the second half of the year should spur companies and consumers to loosen their purse strings when it comes to travel. For investors who are interested in capitalizing on these trends, here are three top travel stocks to watch. These names are likely to climb significantly in 2024.
Expedia (EXPE)
Leading online travel agency Expedia (NASDAQ:EXPE) is well-positioned to benefit from the resiliency of strong travel trends among upper-end consumers and the continued popularity of international travel. The firm tends to generate more revenue from international flights which are usually more expensive than domestic ones.
On Jan. 19, investment bank Piper Sandler identified EXPE as one of its favorite stocks. The firm is more profitable than its peers, while its valuation is attractive, the bank explained. Also on Jan. 19, Canadian bank BMO Capital named EXPE as one of 25 stocks that was underperforming in January but was likely to rebound strongly during the rest of the year.
Analysts, on average, expect EXPE’s EPS to jump to $12.30 this year from $9.62 in 2023.
Marriott (MAR)
Marriott (NASDAQ:MAR), which owns many upper-end hotels, is well-positioned to benefit from both the strength of wealthier consumers and the resilience of corporate travel trends. Also noteworthy is that the firm added a record 91,000 rooms in North America alone in 2023. That jump should enable it to get a very big boost from these positive trends in 2024.
On Dec. 18, Morgan Stanley identified MAR as one of 37 names that could benefit from a combination of high growth and low trading volume.
Analysts, on average, expect the company’s EPS to climb to $9.68 in 2024 from $8.58 last year.
Booking Holdings (BKNG)
Like Expedia, Booking Holdings (NASDAQ:BKNG) should benefit from strong travel trends among wealthy consumers and powerful international travel trends. Also like EXPE, BKNG should get a significant lift from interest rate cuts in the second half of 2024.
On Dec. 28, investment bank Wedbush named BKNG as one of its favorite names among consumer internet companies. The bank believes that travel trends could come in above average expectations in 2024.
Analysts, on average, expect the firm’s EPS to climb to $176.78 this year from $148.56 in 2023.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
