Why is the Webjet (ASX:WEB) share price flying 4% higher today?

What’s behind the travel agent’s shares lifting off today?
The post Why is the Webjet (ASX:WEB) share price flying 4% higher today? appeared first on The Motley Fool Australia. –

Much to the probable relief of ASX investors, the S&P/ASX 200 Index (ASX: XJO) is enjoying a day of healthy gains so far this Tuesday. At the time of writing, the ASX 200 is up a robust 0.63% at 7,290 points. But one ASX 200 share is making those gains look paltry. That would be the Webjet Limited (ASX: WEB) share price.

Webjet shares are putting the ASX 200 to shame today. This company is up a healthy 4.14% at $5.54 a share so far after closing at $5.33 yesterday and opening at $5.50 this morning.

So what could be behind this market-beating performance?

Why is the Webjet share price taking off today?

Well, to put things into perspective, these gains come after a very rough time for the Webjet share price during November. This is a company that was going for $6.60 a share around a month ago, meaning it has fallen more than 16% since then. And that’s including today’s gains.

We can probably blame the emergence of the Omicron COVID variant last month for most of Webjet’s woes. Most ASX shares in the travel sector got smashed over November, probably on similar concerns. For example, on today’s pricing, Qantas Airways Limited (ASX: QAN) shares are still down more than 11.5% over the past month. Corporate Travel Management Ltd (ASX: CTD) shares have lost close to 7.5%. And Flight Centre Travel Group Ltd (ASX: FLT) shares are down close to 15%.

So it’s likely not an individual problem with Webjet that has tanked the shares over the past month, but a sector-wide selloff.

As for today’s gains, we can point to a converse pattern. All of the companies listed above are enjoying strong gains today. Corporate Travel and Flight Centre, in particular, are both up more than 5% so far.

This comes after travel-related shares over in the US rallied strongly last night (our time). Delta Air Lines Inc (NYSE: DAL) rose close to 6% in last night’s trading. American Airlines Group Inc (NASDAQ: AAL) rose almost 8%. And Carnival Corp (NYSE: CCL) shares were up a pleasing 8.14%. It’s possible that the ASX travel sector has taken its cues from these US companies today.

Evidently, both ASX and US investors seem to be putting their Omicron worries behind them, at least for now.

At the current Webjet share price, this ASX 200 travel share has a market capitalisation of $2.1 billion.

The post Why is the Webjet (ASX:WEB) share price flying 4% higher today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Webjet right now?

Before you consider Webjet, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Webjet wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why Bank of Queensland, Imugene, Webjet, and Zip shares are pushing higher

Why has the Australian Ethical (ASX:AEF) share price tanked 17% in a week?

Rio Tinto (ASX:RIO) and Fortescue (ASX:FMG) share prices hit by broker downgrade

Here’s why ASX 200 travel shares are taking off today

ASX 200 (ASX:XJO) midday update: Zip update impresses, BOQ rises

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!