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Travel stocks slow down as Covid’s fears grow but a stock can last

Travel stocks have taken a hit this week as fears over the delta variant grew.

At the end of Thursday, shares of hotels such as Hyatt, Hilton, Marriott and InterContinental were on track for strong weekly losses of 4%, much broader than the 1% drop for the S&P 500. Those names were also under pressure after the latest data from travel metrics company STR showed a decline in hotel occupancy in August following growth in June and July.

A stock could support weaker in the fall travel activity, however. In an interview with CNBC’s “Trading Nation,” Inside Edge Capital Management founder Todd Gordon said Thursday he likes Vail Resorts going on for the rest of the year.

Instead of just being another pure hotel game, he said, this mountain society will benefit from the outdoor sports boom.

“I think everyone is going to ski again this year,” he said. “You know [has proven] it’s a socially distant sport. ”

Gordon highlighted the company’s strengths from its seasonal program and its strong marketing efforts toward its entire portfolio of stations in the United States, Canada and Australia.

Digging into the chart, he said the stock has rebounded towards a support level of $ 260, creating a nice entry point. Vail closed Thursday at $ 285.

Vail Resorts has also announced a new CEO – former Chief Marketing Officer Kirsten Lynch takes the helm on November 1st.

But Danielle Shay, options director at Simpler Trading, isn’t so bullish on travel demand in the cooler months.

“I’m very cautious now in this general area,” he said during the same interview, highlighting the hotel’s transportation and actions.

“I’m on my toes,” he said, “sitting here like Humpty Dumpty ready to fall over the wall …. What I’m watching now, even if the [Covid death rates] they’re low, I always think [Covid] it will absolutely influence the autumn and winter travel season ”.

Noting travel needs from testing to full vaccination testing, she expects hotels, airlines, and cruise ships to continue to be lower, but added that there could be “pockets of strength” in the sector, as well. and a season-ending game as Gordon suggested.

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