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Wall Street’s Top Travel and Leisure Stocks for the Start of Summer

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The arrival of warm summer months means that travel-related stocks are expected to see a boost as consumers begin to go on beach and mountain vacations. One key investment opportunity is the Invesco Dynamic Leisure and Entertainment ETF (PEJ), which has underperformed the broader S & P 500 in 2024 but is gaining traction with analysts. Stocks like Las Vegas Sands and Marriott Vacations, which are included in the PEJ, are particularly bullish among analysts.

Las Vegas Sands, a casino operator with resorts in Macao and Singapore, has seen its stocks fall this year. However, analysts believe that the company has significant potential for growth, with over 77% of analysts maintaining a buy rating and price targets suggesting nearly 40% upside. Seaport Securities initiated coverage on Las Vegas Sands in April, highlighting long-term growth opportunities in Macao and Singapore as well as the company’s free cash flow generation for stock buybacks.

Marriott Vacations, a timeshare company, has seen an 8% increase in its stock price in 2024 after struggling in previous years. Analysts are optimistic about the company’s future, with nearly 56% maintaining a buy rating and price targets indicating a 22% gain ahead. Marriott Vacations surpassed Wall Street’s first-quarter estimates and reiterated forward financial guidance, leading analysts to believe in its potential for growth.

Hilton Grand Vacations, another timeshare business, has also seen positive growth in its stock price in 2024. Analysts predict a more than 36% upside in the coming year, with over 71% maintaining a buy rating. JPMorgan analyst Ryan Lambert initiated research coverage on Hilton Grand Vacations with an overweight rating and a price target implying about 43% upside, citing the company’s attractive valuation and potential for operating momentum.

Other leisure and entertainment stocks that are worth considering include Eventbrite, a ticketing firm, and Madison Square Garden Sports. Eventbrite provides an opportunity for investors to capitalize on the entertainment industry, while Madison Square Garden Sports offers exposure to the sports and live events sector. As consumers begin to travel more in the summer months, these stocks are poised to benefit from increased spending and activity in the leisure and entertainment sector.

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