Summer Travel Stock Update: How 4 Stocks Rate

Let Green Zone Power Ratings be your guide… Published By Money & Markets, LLC. May 24, 2024 Published By Money & Markets, LLC. May 24, 2024 [Turn Your Images On] [Turn Your Images On] From The Desk of Chad Stone Managing Editor, [Money & Markets Daily]( Summer Travel Stock Update: How 4 Stocks Rate Money & Markets Daily, Summer travel season kicks into high gear this weekend. Need proof? Two off days in May just made it onto the list of Top 5 busiest airport travel days in American history. TSA agents screened more than 2.8 million passengers last Friday and roughly the same amount again on Sunday. That's before the madness really kicks off with Memorial Day weekend! AAA expects almost 44 million Americans to travel at least 50 miles away from their homes over the three days. With everyone antsy to kick off summer, it's the perfect time to look at travel stocks through the lens of Green Zone Power Ratings. But first, a look back… How 3 Travel Stocks Did Since Last Summer About a year ago, [I ran a few travel stocks]( through Adam O'Dell's proprietary Green Zone Power Ratings system. I was curious if any stocks were set up for a strong summer rally. I also wanted to make sure the stocks I was considering weren't set up for disaster. But my main goal was to show you how Adam's system distills pages and pages of financial data into a simple number between 1 and 100. Let's review… American Airlines Group Inc. (Nasdaq: AAL) had just reported solid earnings in June 2023 as we headed into another busy travel season. But Green Zone Power Ratings was waving the red flag. At the time, AAL stock was rated a "High-Risk" 14 out of 100. It was set to underperform for the months ahead. The stock peaked at $19.08 in July after a nice summer rally but then quickly headed lower again as the company reported it was dealing with outsized debt. Zooming out, AAL has traded for a 0.2% gain over the last year compared to the S&P 500's 28% bull market run. Now, it carries an even lower rating at [4 out of 100]( --------------------------------------------------------------- [Turn Your Images On]( [$25 AI Stock Could Deliver Life-Changing Windfall]( Discover a company at the forefront of the AI revolution, with up to $1 billion in government-backed contracts and 1,372 patent applications. [Trading at just $25 a share…]( --------------------------------------------------------------- Moving on to Booking Holdings Inc. (Nasdaq: BKNG)… When I highlighted this stock, I noted its strong factor rating on Quality (92 at the time) since its diversified portfolio allows Booking to maintain more total assets compared to debt. The company has been riding the post-COVID travel boom, and its rating has improved to a ["Bullish" 66 out of 100](. Over the last year, BKNG has gained 45% as well, reflecting that Bullish rating. The last stock I looked into a year ago was O’Reilly Automotive Inc. (Nasdaq: ORLY). My thesis was that as travel costs rose, more people would opt for road trips, which meant more money spent on car repairs. ORLY rated a "Strong Bullish" 83 out of 100 at the time, and the stock rallied 30% higher into March 2024. But now, a string of earnings misses, with the company reporting same-store sales falling below expectations, has soured investors on the stock. It's still up 10% since my initial report, but the stock now rates a ["Neutral" 59 out of 100](. That suggests it will perform in line with the broader market from here on out. All told the Green Zone Power Ratings was on the money with these travel stocks. So what about one for summer 2024? Take a Cruise With This Travel Stock? I live in cruise country, so let's take to the high seas. Covid-19 decimated the cruise industry, understandably. If I'm trying to avoid a contagious disease, the last place I want to be is on a boat with thousands of others in the middle of the ocean. Do things look any better now? Let's check out Royal Caribbean Cruises Ltd.'s (NYSE: RCL) Green Zone Power Ratings… [Turn Your Images On] RCL stock now rates a "Bullish" 68 out of 100. For reference, the stock was rated 3 out of 100 in June 2020 following the pandemic-fueled flash crash. Now, Royal Caribbean looks stronger than it has in years… Looking closer, the stock rates a 96 on Momentum. Over the last year, RCL is up 88%, more than tripling the S&P 500! Strong growth is driving investors into the stock. For the first quarter of 2024, Royal Caribbean reported an 850% increase in net income to $360 million year over year. It also grew revenues by 29% to $3.7 billion compared to the same quarter a year ago. That's why RCL now boasts a 97 rating on our Growth factor. If you're looking for a summer travel stock, Green Zone Power Ratings shows RCL is set up for success… Of course, you could also stick to tech and AI stocks after Nvidia Corp.'s (Nasdaq: NVDA) monster earnings call on Wednesday. Matt Clark will have more on NVDA in Tuesday's Money & Markets Daily — watch out for that. But if you want to know what [the AI stock]( move to make now is, Adam has you covered. NVDA proved the AI mega trend is here to stay. It just needs [one critical resource…]( Until next time, [Chad Stone]( Managing Editor, [Money & Markets Daily]( --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [AI Discovers $22 Trillion Gold Mine (Video)]( Two of Silicon Valley’s most secretive billionaires have made a world-changing AI discovery. It places them at the center of a $22.1 trillion boom. And they’re giving everyday investors the chance to join them. A 40-year AI pioneer projects this firm’s valuation could soar 5,000% within a decade. ([Full story…]( --------------------------------------------------------------- [Turn Your Images On] Some Good News for the Fed? Yesterday, we looked at inflationary concerns affecting manufacturers. Today, we’ll look at services. In October 2021, Federal Reserve economists began asking businesses if supply availability had improved, remained unchanged or worsened compared to the prior month. This allowed them to create indexes of supply availability for both service firms and manufacturers. The blue line in the chart below shows the [Supply Availability Index (SAI)]( for services. Positive values suggest that supply availability improved. The index remains positive but will be closely watched in the coming months. Services account for about one-third of the Consumer Price Index (CPI). If SAI-Services can remain positive, the Fed might be able to continue easing its policy — potentially reducing the pace of quantitative tightening further rather than offering consumers a much-needed interest rate cut. — Mike Carr, Chief Market Technician, Money & Markets [Turn Your Images On] [(Click here to view larger image.)]( --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [THIS STRONG BULLISH GAS STOCK IS KEY TO ARGENTINA'S FUTURE]( - [A TREASURE TROVE OF UNTAPPED INVESTMENT IDEAS]( - [MEME STOCK INVESTORS MISSED THIS CRITICAL FACTOR]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](