Since the COVID-19 pandemic began and public health restrictions curtailed activities such as going out to eat or drink, traveling and entertainment, investor interest in those segments has waned.
Here are five stocks that have the potential to move when the economy opens back up:
1. Indoor Dining: Dine Brands Global Inc DIN operates franchised and corporate-owned Applebee's Neighborhood Grill & Bar and International House of Pancakes restaurants. Many states closed or restricted indoor dining when COVID-19 case rates rose. The shares are trading more than 28% below Dine Brands Global's February 2020 highs.
2. Travel: Although American Airlines Group Inc. AAL share prices have been declining for years, it is trading in a range not seen since 2012.
Travel has been heavily restricted in the U.S. and internationally since last March, and once the economy reopens customers are sure to want to book trips.
See also: How to Buy American Airlines (AAL) Stock
Investors are waiting for details of President Joe Biden’s $1.9-trillion stimulus bill and whether it will offer more help for this struggling sector. American Airlines is trading 50% below its pre-COVID-19 share prices.
3. Cruises: The worldwide cruise industry’s market share for 2021 is estimated to be at $23.8 billion, an increase of 81.8% from 2020. Carnival Corporation CCL is down over 57% since February 2020.
Carnival has announced further cancellations of some cruises through April 2023, so this sector may take longer to return. Yet Carnival still plans to continue with many of its routes starting in November.
4. Entertainment: Dave and Buster’s Entertainment Inc PLAY is trading at its lowest level last summer.
It has since rebounded, but is still more than 27% below pre-COVID-19 prices. Once dining and drinking establishments are able to reopen safely, companies such as Dave & Buster's should fill with customers who are eager to spend time with family and friends.
5. Fitness: Being homebound during the COVID-19 pandemic has helped home gym and fitness stocks such as Peloton Interactive Inc PTON soar. The stay-at-home orders have also provided people with more time to exercise, a routine that may become permanent.
Once regular and possibly new customers can return to gyms, investors could see a shift to public fitness venues such as Planet Fitness Inc PLNT.
Investors in Planet Fitness enjoyed a multiyear run when it went public in 2015, then the COVID-19 pandemic forced many gyms to temporarily close. Although Planet Fitness share prices have rebounded over 200% since February 2020 lows, when customers return to the gym, the stock looks set for a run to all-time highs.
As the vaccine rollout continues and restrictions expected to eventually lift, these lagging sectors could have a nice recovery as people begin to travel, cruise, dine out and enjoy entertainment again.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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