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1 Stock to Buy as Travel Interest Soars
The COVID-19 pandemic wreaked havoc on the travel and tourism space in the beginning of this decade. However, interest in travel has been reinvigorated as quickly as it evaporated at the onset of the health crisis. Future Market Insights valued the global tourism market at US$10.5 trillion in 2022. The same report projected that this market would deliver a compound annual growth rate (CAGR) of 5% through 2032. This projection anticipates that this market will reach US$17.1 trillion by the end of the forecast period.
Investors should feel good about investing in this space at the time of this writing. Indeed, the World Travel & Tourism Council expects revenue in this space to also reach above the US$9 trillion mark.
Travel + Leisure (NYSE:TNL) is a great stock to target in this environment. This Orlando-based company provides hospitality services and products in the United States and around the world. Its shares have jumped marginally month-over-month as of late morning trading on July 31. The stock has climbed 14% so far in 2023.
This company unveiled its second quarter (Q2) fiscal 2023 earnings on July 26. Net revenue reached $949 million and adjusted EBITDA climbed to $236 million. Moreover, adjusted diluted earnings per share was reported at $1.33. Looking forward, the company is projecting adjusted EBITDA between $925 million to $945 million. Shares of this stock currently possess a very favourable price-to-earnings ratio of 8.8. Meanwhile, it offers a quarterly dividend of $0.45 per share. That represents a solid 4.2% yield.
