One of the best performing areas of the market during last month's earnings season was the travel industry.
A great number of shares in the industry outperformed expectations, causing their shares to rally higher.
But the good news is that I don't think it is too late to join the party. Here are three travel shares that I would buy today:
Corporate Travel Management Ltd (ASX: CTD)
I thought that one of the strongest results during earnings season came from this corporate travel manager. Unsurprisingly, its shares have rallied strongly since it reported a 33% increase in underlying half-year net profit on the prior corresponding period to $36.4 million. Despite this strong gain I still think Corporate Travel Management shares are good value compared to other growth shares. They are changing hands at 31x estimated full-year earnings, which I think is more than fair given its strong long-term growth outlook.
Crown Resorts Ltd (ASX: CWN)
Although Crown Resorts didn't deliver a first-half result anywhere near as strong as Corporate Travel Management, I saw enough in it to be convinced that it would be a good long-term investment. The company reported normalised earnings before interest and tax of $297.7 million, up 15.2% on the prior corresponding period. I expect more of the same in the future thanks to the strong growth in international visitors to Australia and the opening of its Barangaroo resort in 2021.
Webjet Limited (ASX: WEB)
Another highlight during earnings season was the performance of this online travel agent. Thanks to the seismic shift to online travel booking, Webjet delivered yet another result that outperformed expectations. Furthermore, the company reaffirmed its full-year EBITDA guidance of $80 million. Judging by its performance in the first-half, I suspect that Webjet could outperform its guidance. Especially when its bookings growth continues to outpace the industry average significantly.
