These types of headlines have big implications for many of the reopening stocks, which is why we’ve put together a list of 3 great reopening stocks to buy now. Keep reading below to learn more.
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This story originally appeared on MarketBeat
The pandemic has certainly presented its fair share of investing opportunities for those willing to take calculated risks. That still holds true today, particularly because we are in uncharted territory with the economy gradually reopening and how it will impact certain businesses. As more people get vaccinated and start to resume their normal lives and spending habits, there are going to be big winners to come out of “the great reopening”. You could argue that there’s never been more pent-up demand for industries such as travel, hospitality, and entertainment since people have been socially distancing for the better part of the past year.
While many of these types of stocks have rallied considerably off of last year’s lows, there is likely even more upside for them as we continue to hear positive news about the reopening. For example, last week we received news that the CDC is ok with fully vaccinated people resuming activities without wearing a mask or physical distancing. These types of headlines have big implications for many of the reopening stocks, which is why we’ve put together a list of 3 great reopening stocks to buy now. Keep reading below to learn more.
Wynn Resorts (NASDAQ:WYNN)
Casino and gaming stocks are the perfect example of an area of the market that could really take off as people continue getting vaccinated. That’s a big reason why Wynn Resorts should be on your shopping list, as it’s probably the best casino stock to own for the long-term given its high-quality portfolio of casinos in Las Vegas, Macau, and Boston. Investors should note that Wynn is poised to see a strong rebound in Macau revenues going forward and that the company recently announced it is reopening its Las Vegas properties at 100% occupancy. This is a great sign that things could be returning to normal for Wynn sooner than initially expected.
While Wynn Resorts did recently report a year-over-year decrease in Q1 revenue of 23.9%, CEO Matt Maddox stated “Wynn Las Vegas showed continued strength in the casino segment, with the property remaining the destination of choice for high-quality gaming customers, while forward bookings in the leisure segment improved throughout the quarter.” The company also announced that it is going to merge its online gaming division Wynn Interactive into a SPAC, which will provide Wynn with $640 million of cash proceeds. While there could be some bumps on the road to recovery for Wynn Resorts, it’s still the best casino stock to own if you think there is a lot of pent-up demand for gambling following the pandemic.
Carnival Corp (NYSE:CCL)
It’s hard to imagine a worse scenario for the cruise line industry than the COVID-19 pandemic. As a result, these stocks were battered and bruised in 2020 while cruise ships stayed docked. However, what’s intriguing about a company like Carnival Corp right now is that there is likely a ton of pent-up demand for cruise vacations. Just look at the fact that Carnival reported advance bookings in Q1 that were up 90% from the prior quarter. The company also saw FY22 bookings running ahead of the strong pre-pandemic levels seen in FY19, confirming that there are still plenty of people ready to hit the open seas.
The recent mask update from the CDC is also fantastic news for cruise lines, and investors should view Carnival as a stock with significant upside given that it’s still trading well below its pre-pandemic price levels. While this is a company that will report losses this year and still faces a lot of rough waters ahead, there’s a good chance that investors are underestimating just how quickly passenger counts and trips will rise as we continue to receive positive news out of the CDC. Once we have more details about a conditional sailing order and cruises actually start happening again, Carnival stock could be in for big gains.
This is probably the safest reopening stock on our list since it is a blue-chip consumer staples company that offers an attractive dividend yield. It’s the type of company you can buy and hold for the long-term, and the fact that it will benefit from more people getting vaccinated and heading out to public places like sporting events and restaurants is an added bonus. Coca-Cola is the world’s largest soft drink company with a dominant market share position all over the world. With classic brands like Coca-Cola, Diet Coke, Sprite, Fanta, Vitaminwater, and PowerAde, this company has real staying power in both emerging and developed markets.
In April, the company reported Q1 adjusted earnings per share of $0.55 per share, an increase of 8% year-over-year, and could continue delivering strong earnings as we get deeper into the reopening process. The stock offers investors an attractive 3.07% dividend yield and would be a fine addition to the core holdings of any portfolio.
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