3 must-buy travel stocks right now

After a major market sell-off, these travel stocks are trading below pandemic levels.

Transcript

00:00Regarding the market sell-off and whether or not this has created buying opportunities,

00:05I think that it could be a buying opportunity once we get to some kind of resolution, some

00:15kind of final breaking point on what's going to happen with tariffs.

00:20So I don't exactly know today what that breaking point is going to be, whether it's congressional

00:27pressure or business pressure, some kind of legal action from domestic or foreign entities.

00:35I'm not sure.

00:36But once we get to that breaking point and consumers and companies have better visibility in terms

00:45of investing and discretionary spending, then I would flag that several of the network carriers

00:53look oversold.

00:55Delta, United, Americans' equity market cap today below where it traded at the height

01:01of the pandemic.

01:02Definitely, fundamentally speaking, some of these names look mispriced.

01:07In terms of my top picks in the travel space, maybe not right now.

01:12But certainly once we get to this resolution that I mentioned, or hopefully a resolution

01:18on the tariff side, on the airline side, US airline side, we've called out United as a

01:24favorite US name.

01:26We've called out Panama's Copa Airlines as our overall favorite for airlines in the Americas.

01:33And EBIT margin in the low 20s, a 7% cash dividend yields and net leverage of around 0.5 times.

01:43It's really hard to beat.

01:45Certainly when we look at the aircraft lessons, as I mentioned earlier, air cap happens to

01:50be our favorite one in terms of its global death and breadth.

01:57And I would say the company's done a very good job in terms of its capital allocation strategy.