Backed by a deluge of stimulus measures and successful introduction of COVID-19 vaccines, supplies on Wall Street have resumed in recent days, approaching the 4,100 milestone for the first time in history.
Driven by signs of a strong economic recovery, investors have increasingly focused on stock reopening during the recent rally. Taking this into account, here are three names well positioned to extend their march in the coming weeks amid growing optimism about the economic outlook.
1. Dave & Buster & # 39; s Entertainment
Year-to-date performance: + 49.1%
Restaurant-and-video arcade company Dave & Buster & # 39; s (NASDAQ 🙂 will likely benefit from the burgeoning economic recovery as diners return to their stores in greater numbers amid the emerging return to normalcy.
Shares of the Dallas, Texas-based dining and entertainment facility operator, which has 133 US locations, easily outperformed the broader market in the past year, up 870% since falling to a historic low of $ 4.61 in March 2020. Year-to-date, shares are up nearly 50%.
The PLAY stock, which jumped to a pre-pandemic high of $ 51.73 on March 26, ended Tuesday's session at $ 44.78, earning a valuation of approximately $ 2.3 billion.
Dave & Buster & # 39; s reported a smaller than expected loss when it released the fourth quarter last week, thanks to steadily improving sales in its reopened stores.
The gaming and restaurant chain said it lost $ 1.19 per share, a sharp drop from earnings per share of $ 0.80 in the same period a year ago, but still better than consensus estimates for a loss of $ 1.25 per share.
Meanwhile, sales were $ 116.8 million, easily surpassing expectations for $ 101.7 million in sales as consumers looking for a social dining experience returned to the locations.
Indeed, the arcade restaurant operator said sales in fully-fledged comparable stores during the first eight weeks of the first quarter was the "strongest performance" since the pandemic started about a year ago.
This trend is likely to continue in the near term as fears surrounding the virus continue to abate given the advances that are being made in the field of vaccines.
Honorable Mentions: Darden Restaurants (NYSE :), Cheesecake Factory (NASDAQ :), Texas Roadhouse (NASDAQ 🙂
2. Southwest Airlines
Performance since the beginning of the year: + 37.5%
Perhaps one of the best stocks to buy for investors looking to capitalize on the ongoing resurgence in domestic travel demand is the low-cost airline Southwest Airlines (NYSE :).
Data from the Transportation Security Administration (TSA) showed that over the Easter weekend, nearly five million people were screened at airport checkpoints across the country, the highest number traveled in a weekend since March 2020.
The Centers for Disease Control and Prevention (CDC) last week updated their domestic travel guidelines and announced that those fully vaccinated against COVID-19 can travel in the US without getting tested or self-quarantined. place.
The positive news could mean that domestic air travel will improve at an even faster pace as we approach the summer months, which should bode well for Southwest.
Shares of the Dallas, Texas-based airline, which carries more domestic passengers than any other US airline, have made an impressive rebound from the lows reached during their coronavirus-related sell-off last year, recovering 185%.
The LUV stock, which is up 37.5% so far in 2021, closed at a new three-year high of $ 64.10 last night. At its current level, Southwest has a market cap of $ 37.7 billion, making it the most valuable US passenger jet, ahead of Delta Air Lines (NYSE :), United Airlines (NASDAQ 🙂 and American Airlines (NASDAQ :).
The company then reports its financial results on Thursday, April 29, before markets open. The consensus calls for a first quarter loss of $ 1.88 per share, while sales are expected to total $ 2.05 billion.
Honorable Mentions: JetBlue Airways (NASDAQ :), Spirit Airlines (NYSE :), Mesa Air Group (NASDAQ 🙂
3. Simon Property Group
Year-to-Date Performance: + 36.6%
Despite the accelerated shift to e-commerce and online shopping amid the coronavirus pandemic, the death of the shopping experience has been greatly exaggerated.
In a promising sign, many states across the country have relaxed restrictions on mall and shopping center operators, returning consumers to enjoy a personalized social shopping experience.
Given the reopening of the economy and the potential resurgence in consumer spending, Simon Property Group (NYSE :), the largest owner of shopping centers in the US, is one of the key names to capitalize on the recovery
Shares of the Indianapolis, Indiana-based real estate company, which owns approximately 200 shopping and outlet centers in the US, got off to a strong start to the year, rising more than 36% in 2021.
The SPG stock – which is up 175% over the past 12 months – settled at $ 116.49 yesterday, not far from the 52-week high of $ 121.92 reached on March 15. At current levels, the company has a market cap of $ 37.7 billion.
Simon Property is scheduled to publish its first quarter financial results on Monday, May 10, after the closing bell.
In addition to the top and bottom line numbers, investors will pay close attention to comments from management about their outlook for the remainder of the year and beyond.
In the company's Q4 report released in February, CEO David Simon sounded optimistic about the coming year, saying that tenants are in a better position to pay their rent on time and that some retailers are even starting after to think about opening new stores in the shopping centers. . "We are confident that we have turned the corner and we expect revenue and cash flow growth in 2021," added Simon.
Honorable Mentions: Regency Centers (NASDAQ :), Tanger Factory Outlet Centers (NYSE :), Brixmor Property Group (NYSE 🙂
