3 Top Travel Stocks to Buy Now

As everyone knows, the travel and leisure industry is in the dumps right now as a result of the COVID-19 pandemic. Yet better therapeutics are coming to market every day, and with each passing day, we are getting closer to a vaccine. Bill Gates believes there could be vaccine approvals as early as December or January, meaning the pandemic could end by mid- to late 2021.

There is likely a lot of pent-up demand for travel after a year of restricted movement. Given the run-up in “stay-at-home” stocks this year, investors may wish to look at high-quality travel and leisure stocks that are still down on the year.

That’s why MGM Resorts International  (NYSE:MGM), Disney (NYSE:DIS), and Expedia (NASDAQ:EXPE) all look like promising “post-vaccine” bounce-back travel picks today.

Sunglasses and a facemask on a suitcase.

Three stocks to play a travel turnaround. Image source: Getty Images.

MGM Resorts International

Barry Diller’s IAC/InterActiveCorp (NASDAQ:IAC) recently took a 12% stake in MGM Resorts, and it wouldn’t be a bad idea to follow this smart investor into the stock as well. Not only should IAC help grow MGM’s digital offerings in i-gaming and online sports betting, but MGM’s core casino properties appear quite cheap as well.

MGM’s casinos consist of 35% of rooms on the Las Vegas strip, along with many regional casinos and two properties in Macau. In 2019, MGM achieved adjusted EBITDAR of over $3.3 billion and free cash flow of about $1.1 billion, versus a market capitalization of just $10.5 billion, and an enterprise value of $25.7 billion. That’s just a 7.7 EV/EBITDA multiple and a 10 times cash flow multiple based on last year’s earnings.

New CEO Bill Hornbuckle just took the top role as CEO and appears to be doing a good job conserving cash in the new depressed environment. Of the properties that were gradually reopened in the second quarter, almost all generated positive cash flow, even with 30% occupancy during the week and 50% occupancy on the weekends. The company is also implementing a $450 million cost-saving plan this year, which should stick around even when traffic returns.

Not only should the core properties bounce back strongly once the world gets a vaccine, but MGM should also benefit from the expansion of i-gaming and online sports betting across America. MGM’s BetMGM app should benefit from MGM’s casino presence across the country, as well as its 34 million-plus M-Life rewards members it can reach via digital channels. BetMGM is already live in seven states, on its way to 11 by the end of the year, with market access in 19 total states.

With a cheap stock just in relation to its core casino business, as well as hidden potential upside from BetMGM and IAC’s involvement, MGM looks like a promising turnaround pick in the travel sector today.

Two young girls on a roller coaster.

Image source: Getty Images.

Disney

Most investors know the Walt Disney brand and its impeccable record of value creation over time. Yet Disney’s stock is still off almost 20% below its all-time highs set back

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Why You Should Buy a Vacation Home in Florida

Florida is one of the most popular holiday spots in the country, welcoming millions of tourists every year. While there are several reasonable accommodation options available throughout the state, there are some good reasons to acquire your own vacation house in Florida.

Excellent Climate

Florida is the Sunshine State and not for nothing. It boasts of warm weather for most of the year, which means people from all over the US flock to its beaches for some sunshine. You can enjoy lots of natural beauty if you have a winter home in Florida. In fact, some famous Americans such as Henry Ford and Thomas Edison have had a winter home in the state. Miami Beach is one of the most popular tourist destinations in Florida where thousands of tourists like to spend the winter months, away from the chill and snow in the rest of the country.

Peace of mind

Peace of mind is necessary if you are planning a vacation, especially a long one. If you own a second home here in Florida, you will have convenient access to the warm weather and beautiful beaches all year. You can drop in any time and be sure of having a comfortable place to stay. Having your own home in Florida is also beneficial because you get the freedom to set it up according to your specific needs and lifestyle. You can come in and leave any time of the day without feeling guilty of bothering the owners.

Make your vacation home an investment

The best thing about having your own vacation home in Florida is that if you can use it as an investment. Florida is amongst the most popular holiday destinations in the country and is full of visitors all year. Tourists do not only need beaches and the sunshine, they need a nice, safe place to stay. If you choose to rent out your property to holidaymakers, you can be sure of full occupancy throughout the year. There are several agents in Florida who will market your property easily to visitors looking for a nice place to lodge.

Rent and tax savings

Acquiring your own holiday home is a sensible decision if you are a frequent visitor to Florida. It will save you the hassle of dealing with agents at the last-minute and feeling anxious about getting a poor bargain on holiday lodging. What’s more, you will no longer have to worry about rental expenses on holiday. You will also save on taxes because you can claim the amount of annual depreciation as a deduction against your taxable rental income, just the way loans work. Thus, you can continue to invest in the upkeep and renovation of your property to keep it up with the times.

A good vacation home is a smart decision because of the convenience and other monetary benefits it brings. Having your own Florida home will allow you to spend your holidays without the stress of paying rent. What’s more, you will even be …

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