Late last year, I took the family to Universal Studios.
The trip was a gift to my twins for their 13th birthday. And I was thrilled that most of the family was able join us for a memorable vacation.
To be honest, I didn’t know what to expect at the park. After nearly two years dealing with the coronavirus pandemic, I was worried that restrictions would make the trip less fun for the kids.
Boy was I wrong!
We had an absolutely amazing time. Masks were only required in certain areas. The staff did a great job of sanitizing surfaces and minimizing risk.
The kids and I would go back in a heartbeat!
The trip clued me in to the fact that travel is picking back up here in the U.S.. And the data from the market backs that hunch up!
This morning, shares of Disney (DIS) are surging higher thanks to the company’s great earnings report.
That report gives us plenty of evidence of a growing trend in the market. And thanks to Disney’s report this week, I expect investors to start piling in to travel stocks pushing many of these names sharply higher.
A Great Travel Report From Disney
Disney released it quarterly earnings report after the market closed yesterday.
Earnings for the quarter came in at $1.06 per share compared to Wall Street expectations of just $0.63. The company’s revenue also beat expectations, with sales topping $21.8 billion.
The true highlight of Disney’s report was the strength of the company’s parks business.
Guests are flocking to Disney’s various resorts. They’re booking cruises (which I would highly recommend after taking the twins on one for their 10th birthday a few years ago).
And most importantly, Disney’s guests are spending money!
Thanks to the healthy state of the U.S. consumer, visitors to Disney’s theme parks are spending more on merchandise. They’re staying in the company’s branded hotels. And they’re splurging for add-ons like fast pass tickets that let visitors bypass some of the lines.
Here’s an important thing to keep in mind. This strength is occurring before Disney gets the true benefit of international travel picking back up.
So even though this last quarter was incredibly strong, there’s still a lot of room for improvement!
Travel Stocks are Back!
I wanted to point out Disney’s strength this morning to remind you there are many different opportunities in travel stocks right now.
Cruise ships, airlines, hotel stocks, as well as theme parks are all set to profit from a rebound in travel.
As the omicron variant dies out and families start booking vacations for the year ahead, many of these stocks could soar. And once international travel restrictions start to ease, these stocks could get another tailwind helping to drive investor profits.
Hopefully you’ve already started to accumulate profits from a few of these plays. If not, I’ve got some ideas for you.
You could consider selling put contracts on a few travel stocks. This is an investment strategy that allows you to collect up-front payments in exchange for your promise to buy shares of stock.
It’s one of my favorite investment strategies. And it’s the main strategy behind my Accelerated Income trading service. This model account has open positions for:
- Royal Caribbean Cruises (RCL)
- TripAdvisor Inc. (TRIP)
- and Wynn Resorts (WYNN)
(Please note: This means I have a personal position in all three of these plays. I may adjust or close those positions without notification. I always want to be transparent with you on positions I’m currently holding.)
Bottom line, travel stocks look like great opportunities in today’s market. And now that Disney’s earnings report is drawing investor attention to the space, we could see a new wave of profits.
Make sure you consider stocks in this group to help you profit from the overall global reopening as we start to put the coronavirus crisis behind us.
Here’s to growing and protecting your family’s wealth!