Stock Market Crash Alert: 3 Must-Buy Travel Stocks When Prices Plunge

In recent sessions, the market hasn’t necessarily been cooperative with the bulls and that may have serious implications for travel stocks to buy. As a sector dependent on robust consumer sentiment, it faces significant challenges.

Here’s the bad news. The Federal Reserve just stated that progress on inflation has stalled. As a result, officials are “prepared to maintain the current target range for the federal funds rate for as long as appropriate,” according to Chairman Jerome Powell.

On the other hand, when the Fed gives you lemons, you can make lemonade. Should cyclical ideas stumble, you can potentially grab a discount on premium enterprises. With that thought, here are travel stocks to buy if they encounter a correction.

Wyndham Hotels & Resorts (WH)

For those seeking a possibly discounted opportunity in travel stocks to buy, Wyndham Hotels & Resorts (NYSE:WH) should be on your wish list. Currently, WH trades for a price/earnings-to-growth (PEG) ratio of 0.97X. That’s lower than the sector median 1.7X. Generally speaking, it’s a consistently profitable enterprise, commanding a return on equity (ROE) of 29.08%.

For the current fiscal year, covering experts anticipate Wyndham to post earnings per share of $4.24. That’s up noticeably from the prior year’s result of $4.01. On the top line, they’re looking for sales of $1.45 billion. If so, we’re talking about a 3.7% lift from 2023’s haul of $1.4 billion.

Interestingly, WH trades for 4.49X trailing-year revenue. That’s a rich premium compared to other hotel-related travel stocks to buy. However, in the fourth quarter, the aforementioned ratio ran up to 4.92X. So, at this point, you’d be getting a relative deal. If prices correct, the deal could get even more attractive.

Uber Technologies (UBER)

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Unlike Wyndham Hotels & Resorts, Uber Technologies (NYSE:UBER) isn’t offering much of a discount to investors. For example, the ride-sharing giant trades at nearly 79X trailing-year earnings. That’s well above the underlying software industry’s median ratio of 27.4X. However, the beauty of Uber is that it’s a growth machine. Its three-year sales expansion rate clocks in at 41%.

For the present fiscal year, analysts are looking for EPS of $1.34.  That’s a sizable leap from last year’s print of 81 cents. Not only that, the most optimistic target calls for earnings of $2.37 per share. On the top line, they’re targeting revenue of $43.28 billion. That’s a stout 24.3% higher than 2023’s tally of $34.83 billion. In the following year, sales could soar to $50.36 billion.

Granted, UBER stock trades at 3.72X trailing-year sales. That’s not outrageously high for the software industry but it’s up there. Still, it’s a relative discount compared to the first quarter of 2023. Back then, UBER was trading at 4.11X sales.

With so much growth anticipated in the next two years, UBER could be one of the travel stocks to buy.

Disney (DIS)

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A tricky enterprise to assess, Disney (NYSE:DIS) commands a massive entertainment portfolio. As it relates to travel stocks to buy, the company offers a world-renowned portfolio of theme parks and resorts. It’s fun for the whole family and makes for awesome date-night ideas too. However, it’s also involved in distracting political controversies. Plus, big enterprises can fall pretty hard under the “right” circumstances.

Nevertheless, if the Magic Kingdom stumbles, speculators may want to add DIS to their list of travel stocks to buy. For one thing, analysts anticipate EPS to hit $4.71 at the end of this fiscal year. That’s up significantly from the prior year’s print of $3.76. On the top line, they’re seeking sales of $91.83 billion. That’s modest growth from 2023’s tally of $88.9 billion. Still, growth is growth.

As a blue-chip giant, DIS stock isn’t cheap. Right now, shares trade for 2.29X trailing-year revenue. However, back in Q1 last year, this multiple ran up to 4.11X. Should the red ink start flying, Disney might offer up a solid contrarian opportunity.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.