Market News #33 - 7-11 Feb | Is the Tourism Sector About to Take Off Again?

The tourism sector grew by just 4% in 2021, and international travel is still lower than pre-pandemic levels by approximately one billion passengers. On top of that, 63% of experts from the World Tourism Organization (UNWTO) think the sector won’t fully recover until 2024! Yet, tourism stocks have made notable gains recently. This week, two leading companies in the industry will reveal their results. So, what can we expect?

TUI tries to pay off its debts :moneybag:

The German company, which manages travel agencies, cruise ships, airlines and hotels, has taken on more than €5 billion in debt to keep itself afloat during the pandemic. And the Omicron variant only made things worse. Although many borders reopened, tourists changed their plans and airlines cancelled flights due to staffing problems.

On Tuesday, February 8th, TUI will report its earnings for the last quarter. The company is expected to report a profit of €376 million and revenue of €15.7 billion. This is €3.2 billion less revenue than pre-pandemic levels (2019). TUI remains one of the most volatile stocks at the moment, but analysts see plenty of potential to rise in the long term. The company is hoping for a strong summer in 2022, betting big on destinations like Greece where it recently launched a ‘sustainable tourism lab.’

Is Expedia undervalued compared to Airbnb? :thinking:

If there is a recovery in the tourism sector, then Expedia is another company that could get a boost. Expedia recently changed its cost structure, which could improve bookings, according to one analyst at investment bank Piper Sandler. He also thinks the stock is undervalued compared to Airbnb. “While Airbnb’s ‘pure-play’ focus on alternative accommodations was beneficial earlier in the pandemic, it could become less attractive in an environment where customers are interested in a diverse array of travel services that may include air, traditional lodging and other activities.”

Expedia will report earnings on Thursday, February 10th, so what can you expect? The company is expected to post revenue of $2.31 billion, which would be an increase of 151% compared to the same quarter last year.

Also on the agenda this week: Pfizer :syringe: :pill:

The world of tourism and big pharma are now intimately linked! Most countries around the world now require several doses of Covid-19 vaccines to enter. This is becoming a lucrative business for Pfizer which delivers its results on Tuesday, February 8th. How much money has the company made from Covid treatments? And what do analysts expect for the year ahead? Read our full analysis in this article.

By the way, we wrote our latest article on Pfizer because the BUX community voted for it on Instagram. Follow us on Instagram to get involved in the next vote!

Economic and earnings calendar :calendar:

Monday – Industrial production in Germany and Ireland (December). Trade balance in Austria (November). Quarterly figures from Amgen, Tyson Foods, Take-Two, Aurubis.

Tuesday – Trade balance in France and the United States (December). Industrial production in Spain (December). Quarterly figures from Pfizer, BNP Paribas, Qiagen, Peloton, TUI, Grenke.

Wednesday – Trade balance in Germany (December). Quarterly figures from L’Oréal, CVS, Walt Disney, Uber, Adyen, Amundi, Akzo, Canopy Growth.

Thursday – Inflation rate in the Netherlands and the United States (January). Industrial production in Austria (December). US unemployment rate (weekly). OPEC monthly report. Quarterly figures from Coca-Cola, PepsiCo, TotalEnergies, Unilever, Pernod Ricard, Twitter, Expedia, ArcelorMittal, Delivery Hero.

Friday – Inflation rate in Germany (January). Report on the oil market in France. Quarterly figures from Carl Zeiss, Ipsen, Atari.

Check out the financial calendar in the BUX Zero app for a full list of upcoming earnings reports (and ex-dividend dates).

Interesting to read :books:

BUX Broadcast :netherlands: #41 | Zo kijk je naar kwartaalcijfers

BUX Börsenausblick :de: #32 | Coca-Cola oder PepsiCo: Wer sprudelt mehr?

Do you think that TUI is an interesting company to hold in your portfolio? :thinking:

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We’ll be back next week with another edition of the Market News. In the meantime, have a great week on the markets! :wave:t4:

All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.

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