Top Ways to Still Trade Seasonality this Summer

Jun 30, 2023

This could be the busiest summer travel season in years.

With pandemic fears in the rearview mirror, where they’ll hopefully stay, millions of us are ready for a much-needed vacation.

So far, bookings for hotels and car rentals are up almost 30% from 2022 for travel between Memorial Day and Labor Day, according to AAA.

Airline tickets are up about 40% year over year, they added. Even the U.S. Transportation Security Administration (TSA) said it’s prepared to screen high volumes of passengers at airport security checkpoints nationwide this summer travel season.

“Not only will the roads be crowded but also airports, trains, and cruise lines,” says AAA Public Affairs Manager, Kara Hitchens. “The good news, for those planning a Great American Road Trip, is that the cost of travel will be the same or less than last year, especially given significantly lower gas prices.”

Look at airline stocks, like Delta Air Lines (DAL), for example.

Since the start of June, DAL exploded from about $36 to $47.45, and could see further upside. In fact, thanks to strong flight demand, the company forecast adjusted EPS of $2.25 to $2.50 for the second quarter. That’s up from a prior range of $2 to $2.25. Better, according to CEO Ed Bastian the company’s second-quarter earnings could be its highest ever for the April-June period according to CNBC.

Or, take a look at cruise stocks, like Carnival (CCL).

Since the start of June, the CCL stock ran from $11 to $18.73, but could also see higher highs. All after Jefferies analysts upgraded the stock to a buy, with a price target of $25 a share. “Despite the strong year-to-date performance, we believe the journey from a good trade to long-term investment case remains ahead,” analyst David Katz said, as quoted by Bloomberg.

Even the Generac Holdings (GNRC) idea we’ve highlighted on summer heat, and hurricanes is still exploding higher. Since June 1, GNRC ran from about $110 to $149.82 – and could run higher here, too. All further proof that it pays to trade summer seasonality – especially with COVID in the rearview mirror, where it’ll hopefully stay.

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