March Break might be over, but we bet you are already day dreaming about your next vacation getaway while trying to stay awake in a meeting. So are many Americans apparently.
According to Travel Horizons’ latest survey, more Americans are feeling positive about travel and are already planning their next summer vacation. As a result, an estimated 57 percent of all U.S. adults, or 136 million people, plan to take at least one leisure trip during the next six months. The full story can be found at here at International Meetings Review.
WHAT THIS MEANS FOR INVESTORS:
If more people are ready to take off for vacation then that means some vacation/leisure type stocks are ready to take off to profitable destinations.
So before packing your suitcase, here are the top 3 vacation stocks to pack into your portfolio before everyone else grabs the best seat on the plane – and you’re left with the aisle seat near the washroom.
THE TOP 3 VACATION STOCKS:
UBS rated BUY on Expedia, Inc. (NASDAQ: EXPE) on 04/02/2013, when the stock price was $61.49. UBS upgraded Expedia to BUY with a price target of $77.
Expedia runs the world’s number-one travel website, helping millions of people each month plan their travel. The site’s simple, easy-to-use booking format allows novice travelers and globetrotters alike to choose from a wide selection of vacation packages, flights, hotels, rental cars, resorts, cruises, attractions and more. The site is U.S.-based but has localized sites for more than 30 countries.
The company’s portfolio of well-known brands includes Expedia.com, hotels.com, Hotwire.com, and the TripAdvisor Media Network.
2. Royal Caribbean
With Royal Caribbean International, Celebrity Cruises and three other cruise lines under its belt, Royal Caribbean (NYSE: RCL) is the second largest cruise line operator in the world.
Just like one of its cruise ships, Royal Caribbean’s stock is “steady as she goes”. RCL is covered by 20 analysts – with the highest price target being $44 and the lowest at $32. The consensus for RCL’s upside is positive, based on analysts’ recommendation trends:
1. Walt Disney
Over the decades, the Walt Disney (NYSE: DIS) brand has grown into one of the world’s largest entertainment companies, with 11 theme parks around the world. And everything about the Disney theme parks is done on a grand scale. Now with Star Wars and Marvel into their fold – why would you want to bet against the House of the Mouse?
Deutsche Bank was the latest to reiterate its BUY rating on Disney and raised its price targetfrom $58 to $63 on the stock due to a strong outlook. Deutsche Bank commented:
“Disney has 65% of EBIT from networks, limited secular growth concerns (focused on non-ad supported kids, live sports), very strong competitive positions, leading global brands, strategically complete, and excellent B/S & governance. We see 17% upside to our new $63 target (15x ‘14E P/E).”
THE TABLET TAKEOVER
With recent news showing that Personal Computers (PCs) saw its largest ever decline in sales (thanks a lot Windows 8!) – some investors are staying away from PC-makers such as Dell, Intel, and Microsoft like a bad spam virus.
But rather than passively watch the slow death of the PC, now’s a good opportunity take advantage of the Tablet Taker Over. Everyone knows about the usual suspects (Apple, Broadcom, Google, Amazon, etc.) – but amongst the list of Tablet-favorable stocks are some hidden gems to keep an eye on:
Qualcomm Inc. QCOM
Maxim Integrated Products Inc. MXIM
Texas Instruments Incorporated TXN
ARM Holdings PLC ADS ARMH
Silicon Image Inc. SIMG
Skyworks Solutions Inc. SWKS
Broadcom Corporation BRCM
TriQuint Semiconductor Inc. TQNT
Atmel Corporation ATML
NVIDIA Corporation NVDA
Fairchild Semiconductor International Inc. FCS
STMicroelectronics N.V. ADS
Zacks recently upgraded shares of Silicon Image from an underperform rating to a neutral rating in a report. Zacks currently has $5.20 target price on the stock. The company specializes in in semiconductors and Internet protocol (IP) solutions for the storage, distribution and presentation of high-definition content – all staples of the Tablet Takeover.
Apple Inc. AAPL
Google Inc. GOOG
Amazon.com Inc. AMZN
Barnes & Noble Inc. BKS
What is Barnes & Noble doing on this Tablet Takeover list? Keep in mind that the largest big book seller standing also has a tablet called the NOOK.
Barnes & Noble recently had its price target raised by Goldman Sachs to $18.00:
“We raise our 12-month price target by $1 to $18 to reflect the combination of BKS’s better-than-expected bookstore earnings and a 15% weighting for M&A potential. BKS delivered better-than-expected retail earnings and worse-than-expected Nook earnings. The firm also confirmed that the special committee of its board would entertain an offer from Chairman Leonard Riggio for its retail business, which he indicated he was considering in a filing last week. Finally, after a series of sharp Nook losses, BKS expressed intent to address its costs structure and reduce Nook losses,” the Goldman’s analyst wrote in a research report.
MEMORY – Companies that design and develop memory chips used in tablet computers
Micron Technology Inc. MU
SanDisk Corporation SNDK
Bernstein recently raised its target price to $13 from $11 for Micron, with an OUTPERFORM rating. The company worked with Intel to create IM Flash Technologies, which produces NAND flash memory.
Louis Navellier, creator of Portfolio Grader, named some of the best biotech stocks to check out today – based on his investment tool’s technical analysis.
5 Biotech Stocks to Buy Right Now
1. Discovery Laboratories (NASDAQ:DSCO)
Discovery Laboratories is a biotechnology company focused on developing products for the treatment of respiratory disease.
2. Achillion (NASDAQ:ACHN)
Achillion focuses on the discovery, development and commercialization of innovative treatments for infectious diseases. As of March 27, 2013, 15.8% of outstanding Achillion shares were held short.
3. Genomic Health (NASDAQ:GHDX)
Genomic Health is a life science company, which is focused on the development and commercialization of genomic-based clinical diagnostic tests for cancer that allow physicians and patients to make individualized treatment decisions. The stock price has dropped 6.2% over the past month, worse than the 3.9% increase the Nasdaq has seen over the same period of time. The stock currently has a trailing PE Ratio of 111.60.
4. Acorda Therapeutics (NASDAQ:ACOR)
Acorda Therapeutics is a commercial stage biopharmaceutical company dedicated to the identification, development and commercialization of novel therapies that improve neurological function in people with multiple sclerosis (MS), spinal cord injury and other disorders of the central nervous system.
5. Amarin (NASDAQ:AMRN)
Amarin focuses on developing the treatment for cardiovascular disease in the field of lipid science. The stock price has fallen 11.1% over the past month. As of March 27, 2013, 17.1% of outstanding Amarin shares were held short.
STOCK MARKET PICK: Yahoo – Price Target: $77.00
UBS AG upgraded shares of Yahoo! (NASDAQ: YHOO) from a market perform rating to an outperform rating in a research note released on Thursday morning. They currently have $77.00 price target on the stock, up from their previous price target of $27.00.
Shares of Yahoo! (NASDAQ: YHOO) opened at 23.26 on Thursday. Yahoo! has a one year low of $14.59 and a one year high of $23.26. The stock’s 50-day moving average is currently $21.5. The company has a market cap of $25.616 billion and a P/E ratio of 7.10.
OTHER PRICE TARGETS FOR YAHOO:
Other equities research analysts have also recently issued reports about the stock. Analysts at Oppenheimer upgraded shares of Yahoo! from a market perform rating to an outperform rating in a research note to investors on Thursday. They now have a $27.00 price target on the stock, up previously from $22.00. Separately, analysts at BGC Financial downgraded shares of Yahoo! from a buy rating to a hold rating in a research note to investors on Wednesday, March 20th. They now have a $21.00 price target on the stock, down previously from $22.00. Finally, analysts at JMP Securities initiated coverage on shares of Yahoo! in a research note to investors on Tuesday, March 19th. They set a market perform rating on the stock.
Nineteen research analysts have rated the stock with a hold rating and twelve have issued a buy rating to the company.