In the midst of the coronavirus pandemic, changes are coming.
The Transportation Security Administration says it will now impose fines on travelers who did not wear a mask while in transit. The fines could be up to $ 1,500.
This development could pave the way for a safer travel environment and tempt reluctant consumers to embark on long-delayed vacations. To meet the potentially higher demand, two market watchers selected the top stocks that could benefit from an industry revival.
Danielle Shay, Director of Options at Simpler Trading, is betting on a recent public share.
“I would actually put my money on Airbnb because you know I’m an active options trader and I know the basics don’t make a lot of sense here, but I like the chart pattern,” Shay told CNBC’s Trading Nation Friday.
Shay sees a pattern of higher highs and higher lows that have formed since the company went public in mid-December. Stocks, she said, appear to be breaking out towards $ 220. Airbnb was trading above $ 196 on Monday.
“Right now, people are using Airbnb a lot more than hotels and a lot more than planes, so they have a bit of macro support, but I think the tech setup here looks great for an options trade,” Shay said.
Craig Johnson, chief marketing engineer at Piper Sandler, sees a similarly promising setup for Expedia on Thursday.
“The graph still looks very good. You’re still doing a nice series of higher highs. You’re over your 50- again.[day moving average]They are back above their 200-day moving average and it looks to us like this stock has even more headroom, “Johnson said in the same interview.
According to analysts polled by FactSet, Expedia is expected to post a loss of $ 1.94 per share in the December quarter, after posting earnings of $ 1.24 per share a year earlier. Sales are expected to decline by almost 60%.
MGM Resorts, also slated for this week, is another stock that looks promising, Johnson said.
“Here’s an example of a retail reopening: people get out, want to relive the world and go back to Vegas,” said Johnson. The stocks “are just beginning to make new highs and it looks to us like this stock looks very strong towards earnings pressure.”
MGM, reporting on Wednesday, is expected to post a loss of 95 cents per share in the three months to December, after earnings of 8 cents per share last year. Sales are said to have fallen by 30%.
Disclosure: Shay holds ABNB.
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