London, UK, 5th Feb 2022, ZEXPRWIRE, By 2022, the market for global tourism is expected to reach up to $1.56 trillion in size. This represents a yearly growth rate of 4%. As you can imagine, this data would immediately catch the attention of investors who are looking for promising investments. However, investing in stocks related to travel comes with its own set of challenges.
One of the reasons why many investors shy away from investing in travel-related equities is because they are tied to the unpredictable nature of consumer spending patterns across multiple countries. Most traders prefer to invest in products that have a more stable cycle and longer return on investment. Then again, if you know how to play your cards right, travelling can be one of the most profitable investments that any person can make. In this article, Leo Garcia, broker from FinancialCentre will highlight a few travel stocks that you can add to your portfolio.
Stocks to Invest in 2022
Just in case the stock you’re eyeing of has already hit its 52-week high and there is little chance for it to go up any further, then perhaps it’s time to find another stock. On the other hand, if you think that the company still has more room to grow, then maybe it’s worth holding on and watching how things play out over the next few months. Of course, there are no guarantees but at least these tips can be used as a guide for investors who want to get more involved in trading stocks related to travel.
Ubisoft (OTCMKTS: UBSFY)
Ubisoft is a company that develops and publishes video games, especially those related to adventure and shooting genres. Some of the notable franchises under Ubisoft’s belt include Far Cry, Assassin’s Creed and Watch Dogs. In total, the company has sold more than 80 million copies worldwide as of February 2017. One of its bestsellers is ‘Assassin’s Creed: Origins’, which was released in October 2017 and has received critical acclaim from both players and gaming critics alike for its stunning graphics and immersive gameplay experience. Moreover, there are rumors that Ubisoft might soon venture into the movie industry with its popular video game characters like Assassin’s Creed’s Ezio Auditore da Firenze or Prince of Persia’s Dastan. The stock currently has a price-to-earnings (P/E) ratio of 37.24 and a market capitalization of $12.92 billion.
Overstock (NASDAQ: OSTK)
Overstock has been around since 1999 and is one of the biggest retailers in the US today. It specializes in selling discounted products online, giving it an edge over its competitors like Amazon which sell mostly new items at full retail prices. In addition to that, Overstock recently announced that it would launch a Bitcoin trading service called tZero, which will operate similarly to Coinbase Exchange by providing traders with access to digital currencies such as Bitcoin and Ethereum. The stock currently trades at a price-to-earnings (P/E) ratio of 30.37 and a market capitalization of $1.89 billion.
Netflix (NASDAQ: NFLX)
Netflix is often seen as one of the greatest disrupters in the entertainment industry today, but what most people don’t realize is that it’s also revolutionizing how people save money on their travel expenses. If there’s one thing that this company does exceptionally well, then that would be its ability to provide customers with amazing value for their money. The quality of its shows and movies has always been top-notch and because Netflix doesn’t charge customers anything extra once they exceed their data caps, more and more people are signing up each day to avail of its services. Moreover, another reason why investing in Netflix makes sense is because it’s been aggressively expanding its reach, with plans to expand to more international markets in the next few months. The stock currently trades at a price-to-earnings (P/E) ratio of 91.30 and a market capitalization of $138.95 billion.
Starz (NASDAQ: STRZA)
Starz is another great investment option for investors who want exposure to the entertainment industry but don’t want to invest in high-flyers like Netflix and Disney because they are already so expensive right now. This company has performed extremely well over the last three years thanks to its solid financial performance and consistent dividend payouts, which have made it an attractive option for income investors looking for steady returns from their investments each quarter. The stock currently trades at a price-to-earnings (P/E) ratio of 36.48 and a market capitalization of $2.87 billion.
Southwest Airlines Co (NYSE: LUV)
Southwest Airlines, together with its subsidiaries, provides air transportation services in the United States. It operates through three segments: Air Transportation, All Other Operations, and Corporate Support Services. The Air Transportation segment provides scheduled air transportation for passengers and cargo throughout the United States and to and from Mexico, Canada and the Caribbean. This segment also offers other ancillary airline services comprising ground handling; maintenance; aircraft leasing; aviation parts distribution; airport lounge operations; advertising; inflight catering; and passenger amenities such as games, movies, seatback videos, seat pitch measurements, and interactive website services.
Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own research before making any investment based on your own personal circumstances. You should take independent financial advice from a professional in connection with, or independently research and verify, any information that you find on this article and wish to rely upon, whether for the purpose of making an investment decision or otherwise.