With the global economy slowly reopening, we're quickly finding a good deal of "blood in the street" opportunities in airline stocks, and casinos. If the economy can successfully reopen, and stay open, these are some of the top stocks that could double with patience.
Delta Air Lines Inc. (NYSE:DAL)
Delta is recovery because the worst of the shutdowns may now be over for airlines.
Already, we’re seeing a pickup in spending on hotels, restaurants, airlines, and other industries that took a hit on "stay at home" orders. It's also pushing higher as Transportation Security Administration (TSA) data shows that travel demand is only rising. In fact, for the week ended May 30, the number of travelers returned to 293,144 -- the highest number since May 15.
"We expect trends to continue to improve as states ease stay at home restrictions and leisure activities resume," says Cowen analyst Helane Becker. "Airlines with whom we've spoken have seen modest green shoots with improvement coming in beach and mountain destinations."
United Airlines Holdings (NASDAQ:UAL)
We like oversold shares of UAL for the same reasons we like DAL. With plenty of patience, we believe the UAL stock could double from a current price of $33.74. If the stock can break above double top resistance, we could see an initial test of $40 rather quickly.
MGM Resorts International (NYSE:MGM)
With economies reopening, casinos will soon reopen for business, too. Granted, casinos will have to operate at half capacity with some events not allowed just yet. Still, the reopening means we could see a sizable recovery in these stocks battered by the coronavirus shutdowns. With plenty of patience, we believe MGM could return to our initial target of $34 a share.