Key Points
- Airbnb is on the brink of a reversal and gaining support from analysts.
- Booking.com is trending higher and on the cusp of new highs with growing analyst support.
- Las Vegas Sands sentiment is firming, and the analysts' consensus is leading the market higher.
- 5 stocks we like better than Booking
A look at Marketbeat.com’s Most Upgraded Stocks list will reveal many things. One of them is that Meta Platforms NASDAQ: META has been the Most Upgraded stock for the last three months. It’s seen a string of upgrades that has the market on the brink of a complete reversal. Another revelation is that microchip stocks like NVidia NASDAQ: NVDA and AMD NASDAQ: AMD continue to make a list as well. However, today we’re looking at travel and leisure stocks because travel and leisure stocks are expected to have a strong summer. Global tourism is expected to grow by 30% in 2023 and still not reach the pre-pandemic levels, which means growth could sustain double-digits for the next few years.
Airbnb Is Ready To Rebound
Shares of Airbnb NASDAQ: ABNB have been under pressure for the last year despite strength in the sector due to the IPO. The IPO was as overblown as any, leaving the market overvalued and ready to sell off. That trend is over now, though, with the analysts Holding tight and beginning to raise their price target.
Twenty-six of the 33 current ratings on Marketbeat.com’s analyst tracking page came out since the last earnings report and they all include price target increases. The new consensus target is near $141, which is 25% above the current price action, and many of the new targets are well above that level. Goldman Sachs recently highlighted the company as a top growth pick despite the risk of a recession.
Airbnb is slated to report earnings early in May and to post robust top and bottom-line growth. The analysts are looking for revenue of $1.79 billion compared to the $1.51 billion posted last year and for earnings to be positive. The consensus is $0.14 for the traditionally weak quarter, but the guidance will count. If the company can inspire more confidence in the analysts, it could spark a sustained rally. Until then, shares of ABNB are expected to move up to the middle of the trading range and possibly break into the upper portion.
Booking.com Is On The Brink Of New Highs
Booking.com NASDAQ: BKNG is on the brink of new highs, and the analysts will help send it there. The company received 19 fresh price targets following the last earnings release, and the price target trended higher than last month and the previous quarter. The consensus is only about 5.2% above the current action but puts the stock at an all-time high. Many of the fresh targets are in the new all-time high territory, and a break to those levels will likely inspire more bullishness from analysts.
The analysts are also expecting more in the way of growth from Booking.com. The consensus target is for revenue to grow roughly 38% YOY which is more than double the pace of Airbnb. However, earnings will be the real story, with growth expected at 175%. This should sustain the uptrend, which has the stock just shy of an all-time high now.
Las Vegas Sands Has The Strongest Support
Las Vegas Sands NYSE: LVS has the strongest support of these stocks, with the Moderate Buy rating firming and the price target trending higher than last year, last quarter and last month. The consensus is only 15% above the recent action, but it is leading the market higher, and most fresh targets are above that level. Roth MKM initiated coverage on this stock with a Buy and a target that is $10 above the consensus, citing China's expected rebound. While this stock is far from reaching its all-time high levels, it is amid a melt-up that could quickly get it back to its prepandemic glory near $80.
Before you consider Booking, you'll want to hear this.
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