Best Travel Stocks To Buy In June

Key Insights

• The market sentiment in the travel segment has improved despite high oil prices. 
• Earnings estimates are rising as analysts bet on strong pent-up demand for travelling. 
• Booking Holdings and Marriott International are not cheap but their earnings estimates are moving higher at a robust pace.

Travel stocks continue to rebound as the market prepares for a strong summer season. Meanwhile, analyst estimates for these companies are moving higher, which serves as an additional upside catalyst. Let’s take a look at several stocks that have a good chance to gain additional upside momentum due to rising estimates.

Booking Holdings

Shares of Booking Holdings managed to gain some upside momentum in recent weeks, which is not surprising at the start of the summer season.

Importantly, analyst estimates have been moving higher in recent months. Currently, analysts expect that Booking Holdings will report earnings of $99.33 per share in 2022 and $131.47 per share in 2023, so the stock is trading at 18 forward P/E.

This not too cheap, but traders are typically willing to pay a premium for one of the market leaders. In addition, it looks that pent-up demand for travelling is very strong after several years of coronavirus-related restrictions, so Booking Holdings revenue is set to grow.

Marriott International

Analyst estimates for Marriott International have also increased due to expectations of a strong summer season. The company is expected to report earnings of $5.96 per share in the current year and $7.32 per share in the next year, so the stock is trading at 24 forward P/E.

While Marriott International is not cheap, the market looks ready to focus on the company’s future which is not limited to the next year. Analyst estimates keep advancing at a robust pace, indicating that business fundamentals remain strong.

The stock reached its all-time high levels back in April and should be ready to move closer to these levels in case the general market rebound continues.

To keep up with the latest earnings updates, visit our earnings calendar.