 International travel is booming in 2025, and these 3 travel stocks are thriving with strong demand, pricing power, and improved financial... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ |
| | Written by Chris Markoch 
Investors are frequently instructed to never doubt the strength of the consumer. In 2025, there could be an amendment to that statement: Never doubt the consumer, especially when they are determined to travel. According to the IATA (International Air Transport Association), global air passenger traffic increased 15% year-over-year in the first half of 2025, with Asia-Pacific and Europe posting the strongest growth. This surge in international travel comes despite the U.S. dollar falling nearly 10%, its worst first-half performance since 1972. A weaker dollar makes international travel more expensive and should put pressure on consumer discretionary stocks. But the dollar’s weakness is being offset by strong wage growth in the United States. This increase in income, coupled with pent-up demand from for international destinations that weren’t accessible several years ago, is fueling a robust travel market. As we move into the second half of 2025, these three stocks may offer promising gains for investors looking to capitalize on the enduring appetite for travel. 1. Booking Holdings: AI-Powered Growth Justifies Premium Price Tag Booking Holdings Inc. (NASDAQ: BKNG) is an expensive stock by most measures. In addition to trading at a price-to-earnings (P/E) ratio above its historical averages, BKNG stock now trades for over $5,600 per share. That turns off some retail investors. However, the company continues to justify its premium valuation with growth. In its most recent quarter, the company beat earnings expectations by nearly 30%. That underscores Booking Holdings’ pricing power, increasingly driven by artificial intelligence (AI) and reflected in its impressive 86% gross margins. For skeptics needing more convincing, the second and third quarters are typically Booking’s strongest periods, driven by demand for travel to Asia Pacific and Europe. With the share price at its current level, some investors are hoping for a stock split. However, management has said there are no plans to take such action and instead focuses on share buybacks. 2. Marriott International: Global Luxury Demand Drives Resilience One of the key metrics for hotels is RevPAR (Revenue per Available Room). And in the first quarter of 2025, Marriott International Inc. (NYSE: MAR) reported that its global RevPAR was up approximately 4%, with international (defined as outside of the U.S. and Canada, Marriott’s largest markets) up more than 6%. The growth was particularly strong in Asia Pacific. While U.S. demand shows signs of moderation, Marriott’s diverse brand portfolio and expansion in luxury and upscale properties allow it to pivot toward less price-sensitive consumers. MAR stock recently broke above a three-month high and is now trading near its 20-day simple moving average. However, this appears to be driven more by sector-wide momentum and possible end-of-quarter rebalancing than by company-specific catalysts. The next catalyst for the stock is likely to come from its quarterly earnings report on July 30. 3. Royal Caribbean: High-End Cruising and Debt Cuts Fuel a 100%+ Rally The cruise ship industry is in the middle of an epic, yet predictable, recovery from its lows of 2020 and 2021. Cruise capacity throughout the industry is expanding, and booking volumes continue to set records quarter after quarter. Royal Caribbean Cruises Ltd. (NYSE: RCL) is one of the best-performing stocks in the sector. RCL stock is up more than 106% in the last 12 months and over 40% in 2025 alone. The company caters to a higher-end consumer willing to pay premium prices for the cruise line’s newer ships and longer itineraries. Investors are particularly pleased with Royal Caribbean’s significant debt reduction efforts. In 2024, the company refinanced approximately $3 billion in short-term debt and repaid about $2.1 billion in principal on the strength of its operating cash flow and robust bookings. Those actions have pushed Royal Caribbean’s debt-to-equity ratio down to 2.21, more than 60% lower than its 2022 peak. It also compares favorably with that of Carnival Corp. (NYSE: CCL), which has a debt-to-equity ratio of 2.58.  Read This Story Online |  A little-known regulation quietly goes into effect this July.
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| Written by Gabriel Osorio-Mazilli 
Financial markets typically see increased sensitivity to any and all news when valuations reach a point where doubt and justification need to cross thresholds in order to stop tipping points in any direction. With the S&P 500 now trading at all-time highs, most stocks within the index remain as sensitive as ever to news, regardless of whether it has any material impact on the business's future or not. This is where a focus on fundamentals comes in handy, as investors can lean on the factors that have survived the test of time in keeping stock prices afloat even if negativity overwhelms them, which is exactly why investors need to look within the business fundamentals of Domino’s Pizza Inc. (NASDAQ: DPZ) as the stock goes on a downtrend recently on what may not be bad news after all. The company’s CEO decided to unexpectedly leave his post for Domino’s Pizza, which may be news to retail investors. Still, it appears that the information had already been public for some time. Judging by the stock’s price action, it is not too far-fetched for investors to think that someone (or a group of investors) had the inside information before it became public, but what happens next is just as important as the news release. Why a New CEO Won’t Change Much for Domino’s Pizza The reason for leaving is not clear, and it likely never will be, but that doesn’t matter. What matters is that Domino’s Pizza has been in business long enough to enter an ex-growth phase, which is the typical path for companies of this maturity. That also means leadership roles are more of a formality than a necessity. This is not to say that a CEO is not necessary. Still, this business can run effectively on its own, considering the significant market share and brand recognition it has achieved over the years. Unless the company plans to change its business model or product radically, investors don’t have much to worry about when it comes to a change in CEO. That being said, it is time to dig deeper, past the business model and its current position in the retail sector. This stock has historically been seen as safe due to the underlying stability and non-cyclicality of the pizza industry. That same dynamic makes it hard for other names to start competing with this leader. In fact, the only real competitor to Domino’s Pizza is Papa John’s International Inc. (NASDAQ: PZZA), although the market capitalization gap between the two may be the answer investors need. Domino’s Pizza’s market capitalization is just under $16 billion, while Papa John’s is only $1.6 billion, nearly ten times smaller. This size advantage enables Domino’s Pizza to more easily navigate today's challenging environments, characterized by cost inflation and trade dynamics between the United States and other nations. More than that, it allows for the main financial benefits likely to quiet most (if not all) of the fears currently associated with this news release. Why Investors Should Look to Domino’s Pizza Building on the company’s size and brand reach, investors can quickly quantify these benefits in the financials, where a net income margin of up to 14% stands above the average for a retail stock. However, that is only the beginning. Since Domino’s Pizza also has a gross margin of 28.4%, this net margin is only expected to remain stable. What that translates into is a steady path for increasing earnings per share (EPS), which is where the true meaning of a wealth compounder comes into play. In fact, Wall Street analysts now expect to see up to $5.62 in EPS for the fourth quarter of 2025, which implies a net growth rate of 30% from today’s reported $4.33. As most investors know, where EPS growth goes, so does the stock price. That is precisely why they should pay attention to this short-term dip and realize that a change in CEO likely won’t have any material impact on the company’s rock-solid margins and EPS growth trajectory. Another benefit of the stock now being down to 90% of its 52-week high is that it is in an official correction territory. This may lead some institutional players to come in and support the price back to its previous highs (or even higher). Speaking of which, those from Marshfield Associates decided to build up a stake worth $329.4 million as of mid-May 2025. Last but not least, there is still a high level of conviction emanating from Wall Street. Royal Bank of Canada analyst Logan Reich has decided to reiterate his Outperform rating on Domino’s Pizza stock, alongside a price target of $550 per share. The fact that this valuation was set (and not changed) since late April 2025 indicates that analysts remain committed to this being the likely outcome for the stock. That outcome would imply an additional 22% upside for investors who take advantage of this correction, which has proven to be driven by immaterial news regarding the company's future financial growth. Read This Story Online |  A Historic Gold Announcement Is About to Rock Wall Street?
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| Written by Chris Markoch 
Many investors have been piling into defense stocks in the first half of 2025. The last four years have brought escalating geopolitical tensions, including Russia’s war with Ukraine, Israel fighting a two-front war in Gaza and Iran. There is also ongoing concern about China’s intentions regarding Taiwan and what that would mean for the United States. While military conflicts are not new, the unprecedented scale and scope of global defense spending commitments strengthen the bullish case for defense stocks today. According to SIPRI (Stockholm International Peace Research Institute), global military spending increased to $2.4 trillion in 2024. In 2025, European countries increased defense budgets at the fastest pace since the 1950s. However, the leader is still the United States. The annual Department of Defense budget is proposed to rise about 4% for FY2025, reaching $849 billion. But when combined with supplemental spending measures and projected increases into FY2026, defense funding could approach $1 trillion per year. Furthermore, these are multi-year commitments that include significant funds for modernizing the defense industry, including space, cybersecurity, and unmanned systems. Some investors are choosing to look at low-priced stocks with upside. Risk-averse investors may want to consider some large-cap defense and aerospace stocks offering growth and income opportunities. Lockheed Martin: The Sector Leader Offers Great Value Lockheed Martin Corp. (NYSE: LMT) is the world’s largest defense contractor, but that’s not the only reason it makes this list. In fact, LMT stock is down about 5% this year after the company announced $2 billion in classified program losses and a delay in its F-35 fighter program. The company’s core programs include missile defense systems, space systems, and hypersonic weapons. The company has also made significant investments in AI-enabled mission systems, autonomous helicopters, and satellite networks. That means Lockheed Martin is well-positioned for the future of defense. But does that mean the stock is a good buy right now? At 17x forward earnings, LMT stock is trading at a discount to its historical average. Analysts are also projecting earnings growth of around 9.3% in the next 12 months. That coincides with the consensus price of $541.80, which offers about 17% upside. The dividend yield is 2.87%, which has increased for 22 consecutive years and will likely rise again in 2025. General Dynamics Has Already Scored Big Wins General Dynamics (NYSE: GD) is a defense jack-of-all-trades. The company’s revenue streams include combat vehicles (notably the Abrams tank), nuclear submarines, and IT and cybersecurity services. General Dynamics reaches across all areas of the defense sector. That reach has been on display in several notable contracts: - A $1.85 billion contract modification for Virginia-class Block VI submarines
- A $150 million contract from the U.S. Department of Defense for the Abrams Engineering Program
- A $580 million task order to maintain force protection systems for U.S. Army bases worldwide, ensuring the security of military installations
- A $57.8 million contract for submarine valves
The common theme of these contracts is the U.S. military's intention to upgrade its defense infrastructure. GD stock is trading slightly above its consensus target, and at around 19x forward earnings, it's valued fairly compared to its historical averages. Analysts are projecting earnings growth of over 15% in the next 12 months. This comes at a time when the company is showing increased margin expansion, particularly in its aerospace segment. L3Harris Technologies May Have a Golden Catalyst L3Harris Technologies (NYSE: LHX) stock is up more than 19% in 2025. At around $252 per share, some analysts believe that the stock is due for a pullback. The one-month price chart for LHX stock shows early signs of consolidation, but the company may surprise investors to the upside. That’s because the U.S. military plans to build a “Golden Dome” defense system. There is no money specifically earmarked for the project in the current spending bill going through Congress. However, analysts estimate that over $1 billion in related programs could ultimately support a “Golden Dome”-style homeland defense initiative. This spending would be in areas such as secure communications, sensor fusion, and electronic warfare, all of which would benefit L3Harris. Analysts are only forecasting about 2.5% upside for LHX stock after its run-up in 2025. However, Citigroup Inc. (NYSE: C) boosted its price target from $245 to $280 in June. Plus, at 22x forward earnings, LHX stock is trading at a moderate discount to its historical value. Read This Story Online |  We've uncovered small-cap stocks that have delivered big wins—before the rest of the market caught on.
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