BVH: Which Travel Stock Will Shine This Week: Airbnb (ABNB) or Bluegreen Vacations (BVH)? | StockNews.com
BVH: Which Travel Stock Will Shine This Week: Airbnb (ABNB) or ... StockNews.com
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BVH: Which Travel Stock Will Shine This Week: Airbnb (ABNB) or Bluegreen Vacations (BVH)?
Introduction
Despite macroeconomic uncertainties, the travel industry’s prospects look promising, thanks to pent-up demand. Therefore, it could be wise for investors to buy fundamentally sound travel stock Bluegreen Vacations Holding Corporation (BVH) now. However, I think it would be wise to wait for a better entry point in Airbnb, Inc. (ABNB).
Sustainable Development Goals (SDGs)
- Goal 8: Decent Work and Economic Growth
- Goal 9: Industry, Innovation, and Infrastructure
- Goal 12: Responsible Consumption and Production
- Goal 17: Partnerships for the Goals
US Travel Industry Overview
Total travel spending in the US increased by 1.2% over July 2022 and was up 4.1% year-to-date through July 2023. Air travel demand surged 12% in July compared to the same month last year.
Global Travel and Tourism Market
The worldwide travel and tourism market is predicted to grow at a 4.4% CAGR to $1.02 trillion by 2027. This is driven by factors like rising disposable income and rising interest in traveling. Also, the development of the tourism and travel market has been aided by technological developments and the simplicity of online booking platforms.
Bluegreen Vacations Holding Corporation (BVH)
- BVH operates as a vacation ownership company.
- Trailing-12-month EBIT margin of 28.90%.
- Trailing-12-month EBITDA margin of 30.95%.
- In Q2 2023, BVH’s total revenue increased 10.6% YoY to $260.62 million.
- Sales of VOIs stood at $150.36 million, up 4.2% YoY.
- Net income and EPS came in at $21.91 million and $1.34, up 23.2% and 54% from the prior-year quarter, respectively.
Airbnb, Inc. (ABNB)
- ABNB operates a platform that enables hosts to offer stays and experiences to guests worldwide.
- Trailing-12-month levered FCF margin of 31.14%.
- Trailing-12-month CAPEX / Sales of 0.32%.
- Revenue for Q2 2023 increased 18% YoY to $2.48 billion.
- Net income and EPS came in at $650 million and $0.98, up 71.5% and 75% from the prior-year quarter, respectively.
Conclusion
While BVH is a stock to buy due to its strong fundamentals and positive outlook, it may be wise to wait for a better entry point in ABNB. Both stocks have the potential to benefit from the recovery in the travel industry, aligning with SDGs such as Decent Work and Economic Growth, Industry, Innovation, and Infrastructure, Responsible Consumption and Production, and Partnerships for the Goals.
About the Author: Rashmi Kumari
Rashmi is passionate about capital markets, wealth management, and financial regulatory issues, which led her to pursue a career as an investment analyst. With a master’s degree in commerce, she aspires to make complex financial matters understandable for individual investors and help them make appropriate investment decisions.
More Resources for the Stocks in this Article
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 8: Decent Work and Economic Growth
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 12: Responsible Consumption and Production
- SDG 17: Partnerships for the Goals
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.
- SDG 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being.
- SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
- SDG 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Travel spending in the US: This can be used as an indicator to measure progress towards SDG 8.9.
- GDP contribution of the US Travel & Tourism sector: This can be used as an indicator to measure progress towards SDG 8.9.
- Number of jobs created by the US Travel & Tourism sector: This can be used as an indicator to measure progress towards SDG 8.9.
- Global travel and tourism market growth rate: This can be used as an indicator to measure progress towards SDG 9.1.
- Technological developments and online booking platforms: This can be used as an indicator to measure progress towards SDG 9.1.
- Revenue and EPS growth of Bluegreen Vacations Holding Corporation (BVH): This can be used as indicators to measure progress towards SDG 12.2.
- Revenue and EPS growth of Airbnb, Inc. (ABNB): This can be used as indicators to measure progress towards SDG 12.2.
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. | – Travel spending in the US – GDP contribution of the US Travel & Tourism sector – Number of jobs created by the US Travel & Tourism sector |
| SDG 9: Industry, Innovation, and Infrastructure | 9.1: Develop quality, reliable, sustainable, and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being. | – Global travel and tourism market growth rate – Technological developments and online booking platforms |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. | – Revenue and EPS growth of Bluegreen Vacations Holding Corporation (BVH) – Revenue and EPS growth of Airbnb, Inc. (ABNB) |
| SDG 17: Partnerships for the Goals | 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships. | N/A |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: stocknews.com
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