MENU

Why I think these travel shares could provide market-beating returns

One area of the market which has been on fire in 2018 is the travel industry.

I think this industry was the standout performer during earnings season and wasn’t surprised to see strong gains being made.

The good news is that I don’t believe it is too late to invest in many of these travel shares. Three that I like are listed below:

Experience Co Ltd (ASX: EXP)

One travel share that didn’t turn in a strong full year result last month was Experience Co. The adventure tourism company posted a sharp decline in profit after a once-in-a-generation weather event impacted many of its businesses. I’m optimistic that Experience Co will bounce back with a bang in FY 2019 and resume its growth. I expect this to be underpinned by the tourism boom that Australia is experiencing.

Helloworld Travel Ltd (ASX: HLO)

One of the best performers during earnings season in my opinion was this integrated travel company. Helloworld posted a 3.5% increase in total transaction value to $6.1 billion and an impressive 48.1% increase in profit after tax to $32 million. Pleasingly, management expects this strong form to continue in FY 2019 and has provided earnings growth guidance in the range of 16.5% to 23%. Despite this strong growth and its positive outlook Helloworld’s shares still trade at a little over 19x full year earnings.

Webjet Limited (ASX: WEB)

My favourite option in the travel industry remains this online travel agent. I’ve been very impressed with the way the shift to online booking and the popularity of the company’s brands has allowed Webjet to continue growing its bookings ahead of the industry average. The good news is that management doesn’t expect this trend to end any time soon and is targeting bookings growth rates of more than 3 times the underlying market for the B2C segment and more than 5 times the underlying market for the B2B segment. I expect this to lead to Webjet delivering above-average profit growth for at least the next few years.

Finally, here is another top share which I believe could provide market-beating returns over the coming years. Don't miss out!

Motley Fool Australia Issues Rare "Double Down" Buy Alert

Scott Phillips has stumbled upon a little-owned stock he believes could be one of the greatest discoveries of his 25 years as a professional investor.

 

This is your chance to get in early on of what could prove to be a very special investment recommendation. Think about how many investing trends you've missed out on, even though you knew they were going to be big. Don't let that happen again. This is your chance to get in early.

Simply click here to get started and access our secure sign-up page.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of EXPERNCECO FPO and Helloworld Limited. The Motley Fool Australia has recommended Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!