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3 Top Leisure Stocks To Watch For In June
As we continue to head for a post-pandemic market, it is not surprising that the focus is on recreational stocks. Indeed, the leisure industry seems to be gaining momentum on the stock market today. With widespread vaccination efforts and economic controls, consumers are likely to spend more money on recreational activities. In fact, this seems to be confirmed by a recent study by the service company Deloitte. According to Deloitte, 22% of consumers willing to travel plan to spend “significantly more” on travel compared to 2019. So today we're focusing on leisure businesses that could benefit from the post-pandemic tourism boom.
After all, practically most parts of the world have been homebound for more than a year. Logically, this would lead to an increase in the demand for tourism-related activities as more and more parts of the world reopen. Even now, we can see some of the top names in the industry continue to prepare for the busy times ahead. Earlier this month, TripAdvisor (NASDAQ: TRIP) announced that it would strengthen its existing partnership with Trip.com (NASDAQ: TCOM). The duo are now offering joint customers services at preferential rates that cover over 10,000 host family locations. Because of this, investors would now be keeping an eye on the top names in the industry.
While the traditional personal leisure businesses work hard, newer frontiers in the travel space are making headlines too. Take the latest news about Jeff Bezos & # 39; Space tourism company Blue Origin. The CEO of Amazon (NASDAQ: AMZN) auctioned a spot on the company's first space flight for $ 28 million over the weekend. After reading all of this, you may want to invest in the top recreational stocks yourself. If so, here are three things to know about the stock market right now.
Leisure stocks to buy (or sell) this week
Walt Disney Company
First up, let's take a look at the entertainment industry giant Disney. Most of the time, few can boast such an impressive portfolio of things to do as Disney's. From its timeless classics to multi-billion dollar pop culture IPs, the company would now have many sources of income. Two key businesses in particular are now driving the company's growth path. These are the tourism and streaming services. Given the current momentum we're seeing in both divisions, investors might now be looking to DIS stock. As it stands, DIS stock is currently trading above its pre-pandemic levels.
To understand the company's long-term growth prospects, we would now need to examine its current offerings. On the one hand, Disney's resorts and cruise experiences are likely to benefit from the reopening of the economy. Whether it's the Disneyland experience or a Star Wars-based cruise, the company now has a lot going for it. Accordingly, Disney's operations continue to return to pre-pandemic capacity while adhering to the new standards. At the weekend, the company announced that it would lift the mask requirement for fully vaccinated guests indoors. On the other hand, Disney's streaming service Disney + now continues to dominate the streaming space. In just over 19 months since launch, the platform already has over 100 million paying subscribers. With management looking to more than double that number by 2024, things don't seem to be slowing anytime soon.
By and large, most would argue that Disney is firing on all cylinders right now. For one, his current media portfolio helped him recover from his first pandemic-related losses. With the addition of conventional leisure activities, DIS shares could have more leeway in the future. Would you agree
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MGM Resorts International
Another name to know in the industry by now would be MGM Resorts International. In short, MGM is a global hospitality and entertainment company operating out of Las Vegas, Nevada. In particular, MGM's portfolio consists of 31 unique hotel and gaming destinations worldwide. Aside from that, the company also operates through its BetMGM online gaming arm. Via BetMGM, the company offers US sports betting, which has gained and continues to gain momentum in the current digital age.
Similar to our previous entry, MGM was among those companies hit hard by the onslaught of the pandemic. However, thanks to its strategic shift towards the digital entertainment industry, the company now appears to be on the up. Obviously, the MGM share is currently expecting price gains of over 120% in the past year. With the hospitality division exploring the big tourist tailwinds, investors may be wondering if MGM's shares can still grow.
Well, for one thing, MGM hasn't been resting on its laurels lately. As of last week, the company has been expanding its sports betting app BetMGM to the Washington, D.C. area. out. In particular, this will be done through a multi-year partnership with the Washington Nationals baseball team. In addition, the company is now the authorized gaming operator of the Professional Fighters League, a mixed martial arts sports league. As MGM continues to bolster its increasingly popular gaming offerings, do you think MGM stock could return to its former glory?
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United Airlines Holdings Inc.
Then we have United Airlines Holdings Inc. (UAL). For the uninitiated, UAL operates an extensive global flight network. This includes travel destinations on all seven continents of the world. Overall, given the company's position in the aviation industry, the UAL share would be a viable reopening game for investors. The company's shares are now sitting on price gains of over 35% since the beginning of the year. While these gains are big, UAL stock is still trading below its pre-pandemic highs. Could this mean it still has room for further growth?
If anything, there has been no shortage of positive updates from the company. Last week, the UAL informed its 40,000+ employees that their jobs would remain secure even if federal aid to the industry expires. According to Senior VP John Slater, this is mainly due to the "surge in customer demand" and UAL's current outlook. To back up those claims, the company also released an update on air ticket tariffs the week before. The UAL is currently seeing an increase in ticket prices to the level of 2019, which may now indicate a strong tailwind for the trip.
Not to mention, while operations seem to be picking up the pace, the company remains keen to expand its services. This is evident when UAL recently placed an order for 15 high-speed commercial aircraft from Boom Supersonic. In theory, this would be an alternative for flyers to significantly reduce their travel times. Now, if the company is in full swing, will you add UAL stocks to your portfolio?