I can't say I know what I'm talking about, but since this is a forum for people to discuss their opinions, here is mine!
If the results are good I can't imagine HLO having a similar market response to FLT. If it's going to have the same response regardless of the results, then some of the dip should have already happened, right? FLT released their results last week and everyone has already seen the chaos that caused.
HLO feels like it's at a huge discount when compared to FLT:
1. FLT and HLO have been seeing somewhat similar movements in SP over the last 5 years despite FLT quite literally doubling their shares outstanding since 2019, whereas HLO has only diluted shareholders by 27%.
2. HLO's operating margins have been much higher in the last two years.
3. FLT's FY25 dividend is 1.9% ($0.41) as at the September ex-div SP, while HLO's is 5.8% ($0.11).
Just seems like HLO is so undervalued at the moment I can't see much room for a dip with decent results.
I do admit it's counterintuitive to invest in travel stocks given the escalation in global tensions, so if the results aren't great I expect a small dip as short-term investors look for better opportunities, but for the long haul it just feels like such a bargain... If there's a dip I will be buying more to take advantage of the juicy dividends and will hope for a greener global climate in the coming years.
That being said, I'm just another fool like everyone else on here who thinks they can forecast the market better than they can
(20min delay)