The last year has seen consumers slow down in some parts of the market, but gain in others. The biggest gains have come from travel, leisure, and hospitality services, rather than the sale of goods.
For a world that was largely locked down for a considerable amount of time, that trend makes sense. It’s also a trend likely to continue for some time. Investors have a number of ways to play this trend.
One safe way to do so is to profit from the ongoing demand for concerts. Analysts see the trend continuing, which could bode well for ticket sellers such as Live Nation Entertainment (LYV).
Shares have been trending higher since May, gaining nearly 50 percent. But with revenues up over 75 percent, there’s likely still room for a further rally. The company is nearing a return to profitability following big losses during the pandemic era.
The stock has also been held back by investigations into pricing for tickets in the music industry, should that headwind clear, shares could see a big jump higher on the news.
Action to take: Investors may like shares at current prices or on any drop. Shares can likely continue to trend higher, especially as Live Nation returns to profitability.
For traders, the October $100 calls, last going for about $5.15, could see further gains in the weeks ahead should shares continue their rally.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.