3 Stock Industries Primed for a Rebound this Summer

recovery stocks

*This blog post is my personal opinion only and may contain affiliate/referral links.

The summer of 2021 can turn into the months when recovery stocks bounce off higher than expected. Already on a momentum since many major economies open up early this year, i think we can see more uptick of these stocks as more businesses reopen and the vaccination rollout continues to progress.

As evident with country leaders prioritizing the health and safety of their people, Covid 19 has been suppressed for the most part with the effectivity of the vaccines. Various variants has mutated since the first one was discovered, but so are the awareness and the precaution of the people.

Although it may take some time before majority of the world’s population will be vaccinated, this will eventually trickled down with the developed countries being able to meet the demand of the vaccines first then the developing countries following suite.

Airline

Domestic travel has been flying for a while, and very soon many international flights will be opened up again too. There may be some form of quarantine for some arriving passengers or requirement of a vaccine card but this reopening news is very much welcome by the whole tourism and hospitality sector.

Just having the confidence back of the people to fly again is a big boost to the airline industry. With summer coming, i think many investors will also add some airline stocks to their portfolio to capitalize on the seasonal business growth.

Food & Restaurants

The fact of the matter is some established grocery stocks were not really hit that hard during the pandemic because their production still continue and people are ordering them and collecting them or have them delivered at their houses. What was hit hard and still on the road to recovery are the restaurant stocks. No dining means business is dead.

Restaurants are reopening up once again since the last quarter of last year, but at different stages and degrees. For a long time, only take out and outdoor dining are allowed and there’s only a minimum number of people that can be accomodated outside. Recently though, more and more restaurants are serving indoors.

As an investor, this is a prime opportunity to get back on the restaurant stocks as this business attract more vaccinated patrons this summer. With travel also easing up on many fronts, expect more people to go to local restaurants now.

Entertainment

The entertainment industry has a lot of adjusting to do during the pandemic. Many opted to streaming so movies and other events can be seen. Outdoor experience has to be put on the backseat because of the social distancing restriction.

That means movie houses, casinos, live concerts and theme parks are temporaily shut down. Unfortunately some of them have to close down for good, but for others there is hope when the government started allowing these venues and buildings to reopen.

What this reopening means for investors is stocks like MGM Resorts Intl, SIX (Six Flags Entertainment Corp), AMC Entertainment Holdings and others are poised to lift off the value of the companies and for businesses in the entertainment industry in general.

Thank you for reading.

Jay

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