Even if you have not travelled for the past few years, you will have an idea of how hard the pandemic struck the travelling industry. Be it for studying, working, family interactions, or tourism all sorts of travelling movements were restricted. Because of the highly contagious virus, not only airline stocks but many other associated business’ stocks, such as those of hotels, restaurants and inns had to suffer huge losses. Before Covid showed up, this was one of the industries that was progressing and growing at an unprecedented pace. That is why every country realized it had the potential to support struggling economies. Countries such as Mexico, Spain, Italy, and Turkey took the lead in the development of tourist attractions and hence had tourism industries contributing more than 11-15% to their GDP in the year 2020. Keeping in mind the pace it was growing at, many investors were attracted to the stocks of related companies. However, contrary to the expectations these figures went down too soon and the stockholders of these firms were looking for ways to sell them off.
It is right to say that when Covid rolled out, like many other sectors, the travelling sector was also found helpless. 210 countries were engulfed by the pandemic and the number of cases have crossed the 145,000,000 mark. Such massive destruction was bound to have an impact on the travelling sector. Only in the first ten months of the year 2020, the world tourism industry had to bear a loss of $935 billion which seemed irreparable.
The news of the vaccine being finally out was a breath of fresh air for the struggling sector. Many countries have relaxed their travelling regulations with a condition that the passengers are vaccinated. These include Barbados, Anguilla, Croatia, Cyprus, Iceland, Lebanon, Poland, etc. RichmondSuper’s broker, Mr. Mark Newman thinks this is the news that the industry was waiting for and now it is all set to take the flight. This popular opinion has made investors rethink buying stocks of travelling industry companies. Below are some travelling stocks that you can add to your list before the travelling industry is back on a skyrocketing trajectory.
1- Trip Advisor
Trip Advisor is an American based company that runs online and is widely popular and trusted amongst the travelling freaks. The website can be used on the web and a mobile app. It is said that the website is popular because of the way it takes care of travelling needs such as transportation bookings, hotel reservations, restaurants, lodging, etc. The company was founded in the year 2000 and made a revenue of 1.56 billion in the year 2019 and of $604 million in 2020. The travelling firm has a market cap of more than $6.7 billion.
This stock can be a good buy for the time to come not only because of the travelling relaxations but also because the company is ready to introduce a new subscription-based product that holds the potential to bring a revenue of $1 billion through a total of 10 million subscriptions. Mr. Newman says that all these facts and figures suggest that since the people who were sick of quarantine life will rush towards their planned destinations so stocks of this travelling firm can prove to be a great buy for interested investors.
2- Boeing Company
The Boeing Company is another business that was trampled under the feet of Covid-19. It is an American multinational company that deals in manufacturing, designing and selling missiles, aeroplanes, rockets, rotorcrafts, and telecommunication products all around the globe. It was founded by Mr William E. Boeing in the year 1916. In the year 2018, the company made a revenue of more than USD 101 billion but the business was severely affected due to pandemic and the revenue reduced to 58.16 billion in the year 2020. Despite the loss, it is regarded as the second-largest aerospace company right after Airbus.
In the year 2019, a controversy regarding the safety matters of their planes surfaced but now it appears that the firm has worked over the shortcomings and are ready to get back with a loud bang. Their Boeing 737 MAX has been grounded successfully after two crashes and this is why now countries are ready to trust the manufacturer again. Now that people will be travelling globally, there will be enhanced orders of aeroplane related products it seems like a promising option. On the 8th of April, 15 of these 737 MAX planes were ordered by a Dubai based leasing company. In Mr. Newman’s opinion, this and many other such orders are why it is thought that the improved company’s stocks will be rising high soon and now is the right time to invest in it.
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