Josh Brown and Sean Russo from Ritholtz Wealth Management discuss the current trends in hotel and airline stocks, drawing parallels to previous market reactions during oil price spikes.
They emphasize that Marriott International (MAR), the largest hotel company globally, is well-positioned to capitalize on near-record demand for lodging, with a revenue per average room (RevPAR) increase of 4.2% in Q1 compared to 2025. The company has a robust development pipeline of 618,000 rooms and has raised its full-year guidance for earnings per share (EPS) and adjusted EBITDA.
Despite renewed geopolitical tensions, the travel sector remains resilient, and Marriott's asset-light business model mitigates risks associated with rising oil prices. The stock has shown strong performance, recovering from earlier lows and currently testing its 50-day moving average at $376. Investors are advised to remain long on Marriott, with key support levels identified.
On the other hand, Howmet Aerospace (HWM), which manufactures critical components for aerospace, has seen its stock rise 41% year-to-date. The company reported strong Q1 results, with revenue growth of 19% and a record adjusted EBITDA margin. Howmet's strategic acquisition of CAM Fasteners is expected to enhance its revenue further.
With a favorable outlook for the aerospace sector and robust demand for its products, Howmet is also positioned for continued growth. Both companies are set to report Q2 earnings soon, with expectations for strong performance