Economic trends can shift over time, and catching them near the start can lead to big profits. The strategy is to identify which sectors will benefit from that shift, and invest with the industry leaders, who are best poised to profit.
One trend coming next year is a rise in business travel. It’s been slow to recover since virtually ending during the pandemic, but 2024 looks like it will be the strongest year yet for this trend.
Business travel means expensed airline and hotel travel, which tends to help out airline and hotel stocks.
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Hilton Worldwide Holdings (HLT) is one of the largest hotel chains in the world. It could benefit from higher revenues from business travel.
Currently, the hotel chain looks a little on the pricey side at 24 times forward earnings. But further growth, and the chain’s 30 percent profit margin could help drive shares higher.
Action to take: Even with shares near a 52-week high, there’s likely more upside ahead, especially with improving demand. Shares also pay a 0.4 percent dividend at current prices.
For traders, the January 2024 $180 calls, last going for about $1.80, could see high double-digit returns on a year-end rally in the coming weeks. Traders can reassess the share momentum in the New Year and make further bullish trades.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.