by Ian Cooper
It’s time to start investing in oversold travel stocks, especially as we move into the warmer months of the year when demand for vacations and leisure activities pick up. Historically, around this time of the year, we see interest in companies tied to travel and tourism, as consumers begin planning trips, book hotels, cruises, and other experiences.
Most times, that’s beneficial for hotels, airlines, theme parks, real estate investment trusts (REITs), and cruise lines. Better, as spring then turns into summer, the combination of travel demand, warmer weather conditions, and the desire to just get away. For investors, this makes it an opportune time to jump into beaten-down names that may be poised for a rebound.
Look at EPR Properties (NYSE: EPR), for example.
With a yield of 7.08%, EPS is a diversified experiential triple net lease REIT that specializes in assets such as movie theatres and amusement parks, such as Six Flags. It also just entered into definitive agreements to acquire a portfolio of seven regional parks from Six Flags Entertainment Corporation for a gross transactional value of $342 million.
Even better, it just raised its dividend to 31 cents a month, payable April 15 to shareholders of record as of March 31. Plus, earnings haven’t been too shabby. Q4 funds from operations (FFO) was $1.30 and in-line. Revenue of $182.95 million, up 3.2% year over year, beat by $1.01 million. EPR also introduced adjusted 2026 FFO guidance of $5.28 to $5.48 (midpoint of $5.38).
EPR is also oversold at support dating back to January, and is just starting to pivot from overextensions on RSI, MACD, and Williams’ %R. In addition, if you pull up a three-year chart of EPR, you can see that it starts to ramp higher around April each year.
Hilton Worldwide (NYSE: HLT)
Hilton Worldwide is another hot vacation stock that runs higher as the weather warms up. If we pull up a three-year chart of HLT, we can see that it has a history of running around this time of year, just like the EPR REIT. Most notably, we’ll see an increase in hotel demand along the coasts and around resort areas, leading to higher occupancy rates and increased revenue. HLT also pays a dividend, last paying a quarterly of 15 cents per share on March 31.
Fueling upside, analysts at Jefferies just reiterated a buy rating on the HLT stock with a $339 price target. The firm cited HLT’s strong business model. Analysts at JPMorgan reiterated an overweight rating on the stock with a price target of $350 a share.
American Airlines (NASDAQ: AAL)
We can also look at American Airlines, which is just starting to pivot from wildly oversold conditions. Last trading at $11.12, we’d like to see it rally back to $14 near term, especially if oil prices turn significantly lower with a potential end to the war with Iran.
Helping, American Airlines just raised its guidance by more than 10% compared with earlier expectations for growth of between 7% and 10%. “The revenue growth for American in the first quarter is incredibly strong, and we see that progressing as we move throughout the year,” CEO Robert Isom said, as quoted by CNBC.
As consumers ramp up spending on vacations, entertainment, and leisure activities, companies positioned within this space can benefit from rising demand and improving financial performance. For investors, this creates a compelling opportunity to buy on the cheap.
Backed by improving fundamentals, analyst optimism, and favorable seasonal tailwinds, the stocks mentioned above should see big interest again, near term.
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