We haven’t had a real summer in over a decade. Now that COVID restrictions are hopefully behind us, it’s time to enjoy summer’s warm months. Tourism will most likely be at its peak in a few weeks, and many industries can benefit from the return of tourists. So will summer 2022 stocks be encouraging to trade?
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What Are the Best Summer 2022 Stocks?
Many believe in the ‘’sell in May and go away” strategy. But, historically, it hasn’t always worked.
Despite the holidays, Investors remain active during the summer months due to increased internet access worldwide.
This year’s summer months might be ideal for sitting by the beach and investing in your favorite stocks. So which stocks and industries might be well-positioned for some gains this summer? Let’s find out the best summer 2022 stocks.
Summer 2022 Stocks: Airline Stocks
We begin with airline stocks. The pandemic severely impacted this industry due to travel limitations.
It’s no secret that summertime is generally very busy for airlines. So naturally, this makes them an ideal candidate for a good summer season.
We’ll look at the best summer 2022 stocks involving airlines. As travel ramps up, we want to be in on that money that will come flying, pun intended.
The more people travel, the better our investments can become.
Top Stock Picks
Delta Air Lines (NYSE: DAL): Delta Air Lines is a good pick due to its international coverage. The company services over 1,000 destinations in 60 countries and six continents. It also has various partners across the globe to facilitate layovers and long-distance traveling. Many Americans will be using its services to escape North America this summer. To diversify its operations, Delta also uses its fleet for carrier services.
Southwest Airlines: (NYSE: LUV): Southwest began as a low-cost airline. Today, it is the only major carrier never to undergo bankruptcy and maintain its status as a leader in the industry. Southwest services 103 destinations in the US and ten other countries. The company is also the world’s largest low-cost carrier. As a result, it is also a great pick in the airline industry.
Air Canada (OTCMKTS: ACDVF) or (TSE: AC): Let’s cross the border to Canada. Its largest airline is Air Canada. It’s the world’s 10th largest airline by fleet size. Air Canada operates in 193 countries around the globe. Look for this airline to grow as more people want to visit and establish themselves in Canada. These summer 2022 stocks are a must-watch.
Summer 2022 Stocks: Cruise Stocks
Cruise ships suffered the same fate as airline stocks. Who wants to be stuck on a boat with strangers during COVID?
Many did, and many passengers were stuck on these ships for much longer than anticipated. I will never step on a cruise.
Others will. Today, cruise ships are back in business. However, many travel lines remain interrupted in Asia until summer ‘23, which isn’t good for business. So let’s look at the big 3 in the industry and how these summer 2022 stocks could shape up.
Top Picks
Carnival Corp (NYSE: CCL): Carnival Corp owns the world’s largest fleet of cruise ships. However, these ships aren’t worth much when they’re empty. The company also owns hotels and various vacation destinations to complement its cruise ship business. Despite an increase from its 2020 revenues, the stock is way below its 2019 levels. The company needs strong summer ’22 and year-end financials to regain investors’ trust.
Royal Caribbean Cruises (NYSE: RCL): It’s a similar story for Royal Caribbean. The net loss is about half ($1.4B in Q4 2021), and revenue growth from 2020 isn’t as strong as Carnival Corp. Nevertheless, the company expects 95% of its fleet to be up and running this summer. It remains to be seen which countries will accept cruise ships in their ports.
Norwegian Cruise Line Holdings (NYSE: NCLH): It doesn’t surprise that Norwegian Cruise is also in a sea of red. COVID tests remain mandatory until the end of September. So how long can the company report over $1B in yearly losses? Has the ship sailed yet, or will this summer turn things around?
Hotel Stocks
For those still reluctant to spend their holiday on a cruise ship, this section is for you.
Hotels and various eclectic accommodations are making a strong return this summer.
Airbnb could also see a boost if people are suspicious of hotels. These summer 2022 stocks are great to keep on a watch list.
Top Picks
Booking Holdings Inc (NASDAQ: BKNG): Booking is interesting since it owns no properties. Instead, it arranges travel plans for millions of people around the globe each day. From backpacker hostels to 5-star hotels, the company is well-positioned for this summer. Booking offers flights, travel packages, car rentals through rentalcars.com, attractions, and airport taxis. The platform is very user friendly and is a must-download for all tourists.
Airbnb Inc (NASDAQ: ABNB): Similarly to Booking, Airbnb owns no properties. Instead, the company facilitates accommodation arrangements between travelers and property owners. Airbnb has a wide selection of properties. However, it isn’t as diverse as Booking. Nonetheless, the company is a global success and will remain in the years to come.
Hilton Hotels Corporation (NYSE: HLT): Hilton Hotels also works with its subsidiary, Hilton Grand Vacations (NYSE: HGV). Together, they offer hotels and resorts across the globe. So travelers who aren’t ready to put on a backpack and travel the local way have an easy way out with Hilton. Their resorts are safe and can satisfy your every need.
Home Improvement Stocks
Traveling isn’t for everyone. Some want to take time off this summer to work on their homes.
There’s nothing wrong with that. So which companies are ready to satisfy this need?
These summer 2022 stocks could also be boosted because of last year’s housing boom. But, unfortunately, many houses needed fixing up.
Top Picks
Home Depot (NYSE: HD): Home Depot often flies under many investors’ radars. It’s the largest home improvement retailer—no wonder the company performs exceptionally well during the summer. Amid the pandemic, it was classified as an essential business. This boosted the company’s sales while other companies were struggling. So it wouldn’t be a surprise if the company exceeded expectations after the summer season.
Lowe’s (NYSE: LOW): Like Home Depot, Lowe’s remained open during the pandemic. This effectively boosted the company’s sales, and the stock took off. As a result, Lowe’s is quickly expanding and well-positioned to satisfy home-improvement needs this summer.
Outdoor Entertainment Stocks
Walt Disney Corporation (NYSE: DIS): Walt Disney theme parks were considered premium tourist destinations pre-pandemic. The company has 12 worldwide destinations (California, Orlando, Hong Kong, Shanghai, Paris, Tokyo, Japan, etc.). Those theme parks are expected to generate a lot of demand this summer. Disney is also expanding thanks to cruise ships (they’re back!). So keep a close eye on Disney.
Six Flags Entertainment (NYSE: SIX): Six Flags operates 27 theme parks across the US, Canada, and Mexico. This company doesn’t have the same reach as Disney, but it can offer many adrenaline seekers a ride for their money. As a result, many analysts are bullish on Six Flags. The stock recently exceeded expectations. Will it do the same for the next quarter?
SeaWorld Entertainment (NYSE: SEAS): Not my favorite pick, but it’s worth a look from an investor’s perspective. If you come across a water-theme park, chances are it belongs to SeaWorld. The company owns SeaWorld, Busch Gardens, Discovery Cove, Aquatica, WaterCountry USA, Adventure Island, and Sesame Place. All these infrastructures are bound to attract tourists this season.
Conclusion
This summer will be full of entertainment at home and abroad. Businesses will capitalize on the return to ‘’normality,” and consumers will be happy to hear that. Despite the agelong saying ‘’sell in May and go away”, this summer might be the complete opposite.
Of course, many external factors can still change the course of this summer. The war between Russia and Ukraine is far from over, and the next COVID variant might be right around the corner. It has become harder to predict what’s next nowadays.
Some stocks picked above might be riskier than others, but they might be worth it. Don’t forget to conduct your research before buying anything.
