A strategist picks the best stocks to ride the reopening wave
The S&P500 may come out of a losing week, but travel and leisure stocks have turned hot.
cruise lines Royal Caribbean, Norwegian and Carnivalhotels hilton, Hyatt and Marriott and airlines JetBlue, American, United and South West have increased over the past week. Bets on reopening trade as the United States surpasses 70 million vaccine doses have sparked a fire under those stocks.
According to Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors, a casino stock could be the best play on the recovery.
“Lido Advisors took a position in its Lido recovery portfolio in Las Vegas Sands“Sanchez told CNBC”trading nation” Friday. “It was an absolute dog in January, they missed out on gains because of Chinese Lunar New Year travel restrictions, but if you want to play with China and the resumption of travel to the United States, c ‘is interesting. .”
Las Vegas Sands fell almost 20% in January, but jumped 30% in February. The company reported a net loss of 32 cents per share for its quarter ended December, down from a profit of 88 cents a year earlier. Sales fell by 67%.
“They hold one of only six licenses in Macau, and we think the upside potential here is really great and they’re currently priced very attractively,” Sanchez added.
Craig Johnson, chief market technician at Piper Sandler, says a stock could be a way to gain exposure across the travel industry.
“Instead of trying to find an individual hotel or an individual business, play it all the way through TripAdvisor. I think there will be a lot of people looking to travel again,” Johnson said in the same interview.
Johnson said the charts show a downward trend reversal after a major low formed. He now sees the stock returning to its former highs set in 2018 – a target that implies a 35% upside.
Johnson added that the JETS Airline ETF could also be a good bet.
“That would be an ETF way for investors to play this re-opening trade and it looks like another great setup again and you get about 26% upside to hit one of the major overhead resistance levels in the middle of the $30,” Johnson said.