This travel-focused tech company just separated its CEO and President roles to help strengthen the company in preparation for the winding down of the pandemic. The company’s earnings are forecast to grow by more than 70% next year.
Sabre Corporation (SABR)
From Internet Wealth Builder
The best formula for finding potential outperformers is to look for quality companies that have been badly beaten down by events beyond their control.
Sabre qualifies, big time. Its software powers the back end of many travel-related companies. These include airlines, car rental companies, cruise lines, hotels, search engines, and online travel agencies. It’s a huge market, with the industry generating over $8 trillion annually when things are normal, which, of course, they have not been for two years.
Prior to the pandemic, the company’s stock was trading north of $27 but it got crushed when travel ground to a stop, trading as low as $8 in March 2020. It then rallied when it appeared the vaccines had the coronavirus in retreat, only to be flattened again with the onset of Omicron.
At some point, the coronavirus will fade away. Tourism will return, airports will be jammed, cruise ships will be full, and Sabre’s stock will soar once again. I think you’re looking at upside of 100%+ here, but it will take time, patience, and a strong stomach.
Gordon Pape, Internet Wealth Builder, buildingwealth.ca, 1-888-287-8229, January 4, 2022