Zacks Analyst Blog Highlights Marriott International, Choice Hotels International, Malibu Boats and Bluegreen Vacations
For immediate release
Chicago, IL – June 14, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Marriott International, Inc. MAR, Choice Hotels International, Inc. CHH, Malibu Boats, Inc. MBUU, and Bluegreen Vacations Holding Corp. BVH.
Here are the highlights from Monday’s analyst blog:
4 solid stocks to buy as America prepares for summer vacation
Americans are elated and have no plans to cancel or postpone vacations this summer despite skyrocketing rents for hotel rooms and airline tickets. The COVID-19 pandemic has brought the travel and tourism industry to a virtual standstill for the past two years.
However, things are looking up and a growing number of Americans are planning summer vacations this year. This should finally give a boost to the travel and leisure industry, which is struggling to get back on its feet. So actions like Marriott International, Inc., Choice Hotels International, Inc., Malibu Boats, Inc. and Bluegreen Vacations Holding Corp. are likely to benefit from it in the short term.
High costs are less likely to dampen travel plans
The majority of Americans are vaccinated and the government is further easing restrictions ahead of the summer vacation. This is all done as forecasts indicate that more people are planning to travel this summer vacation.
According to a new report from Deloitte, 46% of Americans plan to stay in hotels or other forms of paid accommodation this summer when they go on vacation. Of those planning to go on vacation, the majority are young Americans. However, many over-55s, who for some time were hesitant to travel because the pandemic is far from over, are also making vacation plans.
Interestingly, people are also willing to spend more. Rising costs have been a concern, but people don’t seem to care. According to the survey, three in 10 travelers are even willing to spend more than they did in 2019, or before the pandemic hit.
Another poll by CarTrawler.com shows people are in no mood to abandon vacation plans despite rising airfares and hotel room rents. According to the poll, 73% of Americans are feeling “positive” about vacationing this summer. This means that 73% of people plan to fly somewhere.
Yet another poll by World Nomads shows that 41% of Americans say nothing can stop them from going on vacation this summer.
Preferred domestic travel on premium airfares
Most polls show that people prefer domestic destinations this time around. According to Deloitte, US-based properties will attract most travel spending this summer, as only 15% of Americans plan to vacation in an international destination.
This is likely due to higher international airfares and unpredictable entry and exit restrictions. Of those traveling to the United States, 67% plan to stay in hotels, while 16% plan other rental stays.
According to CarTrawler.com., 51% of travelers plan to take domestic leisure trips.
The COVID-19 pandemic has nearly crippled the travel and leisure industry as strict travel restrictions were imposed in the first months following the outbreak. Although people started getting vaccinated in early 2021, it has taken longer for the economy to reopen as several variants of the coronavirus have disrupted travel.
Additionally, many people were initially skeptical about traveling despite being vaccinated, as they feared contracting the virus.
However, they are much more confident now and are desperate to go on vacation after staying at home for two years. Therefore, higher airfares and room rents are no longer a factor as people are willing to shell out a few extra bucks this time around.
Now would be an opportune time to invest in stocks that could benefit from the travel boom. We’ve handpicked four such stocks that carry a Zacks rank of No. 1 (Strong Buy) or 2 (Buy). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Marriott International, Inc. is a leading global hotel company focused on lodging management and franchising, following the spin-off of its timeshare business into a publicly traded company in November 2011. MAR’s classic upscale hotel brands include Marriott Hotels , Sheraton, Delta Hotels, Marriott Executive Apartments, and Marriott Vacation Club. Additionally, its distinctive upscale hotel brands include Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio and Design Hotels.
Marriott International’s expected profit growth rate for the current year is 87.2%. The Zacks consensus estimate for current-year earnings has improved 8.2% over the past 60 days. MAR sports a No. 1 Zacks rank.
Choice Hotels International, Inc. is one of the largest hotel franchisors in the world. As of March 31, 2022, the CHH had 6,996 hotels open, representing nearly 577,714 rooms. Choice Hotels International operates in 40 countries and territories internationally and has a presence in 50 domestic states and the District of Columbia.
Choice Hotels International’s forecast earnings growth rate for the current year is 16.3%. The Zacks consensus estimate for current-year earnings has improved 2.9% over the past 60 days. CHH has a Zacks rank of #2.
Malibu Boats, Inc. operates as a designer, manufacturer and distributor of sports boats primarily in the United States. MBUU markets its boats under two brands: Malibu and Axis Wake Research. Its boats are used for water sports such as water skiing, wakeboarding and wake surfing as well as for general recreation.
Malibu Boats’ projected profit growth rate for the current year is 29.6%. The Zacks consensus estimate for current year revenue has improved 10% over the past 60 days. MBUU wears a Zacks rank #1.
Bluegreen Vacations Holding Corporation operates as a vacation ownership company. BVH markets and sells holiday participations and manages resorts in leisure and urban destinations. Bluegreen Vacations Holding Corporation is based in Fort Lauderdale, Florida.
Bluegreen Vacations Holding Corporation’s expected earnings growth rate for the current year is 35.1%. The Zacks consensus estimate for current-year earnings has improved 11.9% over the past 60 days. BVH wears a No. 2 Zacks rank.
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