The travel industry has been one of the worst hit industries due to the coronavirus pandemic. Occupancy rates in hotel rooms and flight bookings plummeted amid the health crisis. International flights were completely stopped in the beginning of the crisis and are yet to completely reopen…
However, the travel industry remains hopeful of a strong recovery with vaccines bringing the health crisis under control next year. There are several promising coronavirus vaccine candidates, which are expected to hit the market next year, speeding up the recovery process.
This is why several stocks in the travel and hotels industry are being seen as turnaround stocks. These stocks are currently underperforming, but could see significant gains once market conditions change.
Stocks like Las Vegas Sands Corporation (LVS), Marriott International (MAR), Hilton Worldwide Holdings, Inc. (HLT), and Allegiant Travel Company (ALGT) are turnaround stocks with high potential. These companies are continuing to invest in their growth and are well-poised to gain from a recovery in the travel industry once the pandemic subsides.
Las Vegas Sands Corporation (LVS)
LVS develops and operates integrated resorts in tourist destinations in Asia and the United States. The company’s resorts offer a range of amenities and facilities such as gaming, entertainment, celebrity chef restaurants, retail, and more. LVS’ stock has gained 50% since hitting its low in mid-March.
LVS is looking to enter new markets and has been working to develop properties in destinations such as Singapore and Macao. For the quarter that ended September 2020, the company reported an unrestricted cash balance of $2.4 billion, which indicates financial strength for the company until the travel industry rebounds.
LVS is expected to witness revenue growth of 25.6% for the quarter ending March 2021 and 174.2% in 2021. The company’s EPS is estimated to grow 766.7% for the quarter ending March 2021 and 175% in 2021.
Marriott International (MAR)
MAR develops, operates, and licenses hotels and timeshare properties. The company has worldwide operations and is a leading brand in the luxury travel space. MAR’s stock has gained 71.7% since hitting its low in mid-March.
MAR has recently launched a new service called Marriott Bonvoy which provides tailor-made packages for people looking to work remotely at one of their hotel properties. Their new offering consists of a Day Pass, Stay Pass, and Play Pass. The company has also entered into an agreement with Magellan Development Group for the introduction of the St. Regis Hotels and Resorts brand to enter Chicago.
For the third quarter, the company added more than…
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