(C) Reuters. Even Though the Economy is Reopening, Continue to Avoid These 3 Popular Travel Stocks
Even though the economy is reopening thanks to an extensive vaccination drive, the travel industry is far from returning to its pre-pandemic revenue levels. So, we think it wise to avoid struggling travel stocks Booking Holdings (NASDAQ:BKNG), Airbnb (ABNB), and Carnival (NYSE:CUK) (CCL). Their continued financial weakness may lead these stocks to further price declines in the near term. Read on.The travel industry was hit badly by the COVID-19 pandemic as traveling practically came to a halt owing to restrictive containment measures. The industry received a ray of hope in November 2020 as Pfizer , Inc.’s (NYSE:PFE) COVID-19 vaccine was found to be effective. But although half of American adults are now fully vaccinated against the coronavirus, the travel industry has yet to see a robust revival of demand for travel.
It’s expected to be a long time before the global travel industry returns to pre-pandemic business levels because many countries are still experiencing new COVID-19 infections. Furthermore, many Americans are still resistant to receiving the COVID-19 vaccine, which is contributing to the challenging backdrop the industry faces. Adding to concerns, most travel-related companies have huge debt loads and are expected to lose money again this year.
Booking Holdings Inc. (BKNG), Airbnb, Inc. (ABNB), and Carnival Corporation & plc (CCL) are three struggling stocks in the travel sector. Along with the weak industry backdrop, we think their weak financials make these stocks best avoided now.
Even Though the Economy is Reopening, Continue to Avoid These 3 Popular Travel Stocks
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.