Cash in on Vacation Getaways - Investment Ideas

If you've got a case of the winter blues, you're not alone. Now is the time of year when millions of people all over the world empty their pockets to fulfill a tropical fantasy.

Not only is that a cure for a lack of Vitamin D, it also provides a huge boost for the vacation industry.

December to early Spring represents the busiest time of year for many popular vacation companies and destinations, flooded by masses of people trying to escape the cold wind and snow.

That seasonality is getting an extra boost this time around too as the global economy and stock markets continue to recover, increasing discretionary spending at the top and helping regular folks feel more comfortable splurging for a vacation.

The Strong Get Stronger

Here's another thing to consider. The vacation industry and private sector in general has just battled its way through a couple of very challenging years. That means productivity has spiked while costs have been slashed, the perfect recipe for margin expansion and earnings growth.

That trend has already started showing up on the Street, with a number of vacation oriented companies showing gig gains from last year as demand returns to their market.

Here are a few worth taking a look at.

Top 4 Vacation Stocks

Royal Caribbean Cruises Ltd. (RCL) is a familiar name to most, a global cruise company with a market cap of $10.7 billion. Taking one quick look at the company's chart tells you it is doing something very good right now, with shares recently hitting an all-time high on an average earnings surprise of 75% over the last four quarters. But the analysts are still bullish, projecting 35% growth next year. Throw in a PEG ratio (PE/growth) of just .50 and RCL looks like a serious winner. Take a look at the chart below.

Nothing says vacation quite like Vegas, which is why casino and resort operator Wynn Resorts Ltd. (WYNN) is uniquely positioned to benefit from vacationers hunting for a thrill. This company has also seen a big rebound in its business over the last year, with its share price trading at a multi-year high on an average earnings surprise of 19% over the last four quarters.

Gol Linhas A (GOL) isn't a very high-profile name, but when it comes to tropical vacations, it has a lot to offer. The Latin American discount airliner is fresh off the heels of a new multi-year high, fueled by a recent 20% earnings surprise and bullish 81% growth projection. That has helped keep the valuation picture in check, with a PEG ratio (PE/Growth) of just .19%, well below the benchmark of 1 for value. Take a look at the chart below.

Priceline.com (PCLN) is a diversified play on the world's appetite for a good vacation, offering travel and hotel services worldwide with a market cap of $21.5 billion. This stock has been a serious high flyer over the last year, recently hitting a new all-time high on strong results and a bullish growth projection. But in spite of the gains, the valuation picture is still in check, with a PEG ratio of .80%, safely below the benchmark of 1 for value. Take a look at the chart below.

Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.
 
GOL LINHAS-ADR (GOL): Free Stock Analysis Report
 
PRICELINE.COM (PCLN): Free Stock Analysis Report
 
ROYAL CARIBBEAN (RCL): Free Stock Analysis Report
 
WYNN RESRTS LTD (WYNN): Free Stock Analysis Report
 
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