Stock picks to weather high fuel pump prices

Gas prices rose to over $ 3 per gallon, their highest level since late 2014 when the shutdown of the Colonial Pipeline squeezed supplies.

The price hike precedes what is expected to be a busy summer cruising season, with reopenings and pent-up demand fueling consumer travel.

However, Mark Tepper, president of Strategic Wealth Partners, doesn’t expect this to fail summer road trips.

“If you think about it, a family of four has received over $ 10,000 from the government over the past year. On July 1, they are paid $ 300 per month per child, so you know an additional $ 100 per child for a month or so that they pay at the pump is really nothing in the grand scheme of things, considering what’s going on, “Tepper told CNBC’s” Trading Nation “on Wednesday.

Tepper added that rising airline prices could also force consumers to take road trips via flying to vacation destinations.

“The company I like here is Six Flags. I like the regional amusement park game over the destination parks like Disney and SeaWorld. I think they’re easier to get to, you can go there, you can go on a day trip, you can go for a weekend “said Tepper.

Shares in Six Flags, a park operator valued at $ 3.5 billion, are up 21% in 2021, more than double the earnings for the broader market. Tepper said the stock has room to grow.

“Six Flags is trading at a discount, and I really think expectations and earnings revisions for these people will keep rising over the next few quarters, so I think it’s a buy here,” he said.

According to FactSet, the company is projected to post a loss of 82 cents per share in fiscal 2021, which is less than the pandemic loss of nearly $ 5 per share in 2020. In 2022, earnings are projected to be $ 1.92 per share.

Gina Sanchez, CEO of Chantico Global and chief market strategist at Lido Advisors, likes Six Flags in the short term but says that another game at the amusement park is a better choice in the long term.

“Disney has a few other legs to offer besides the park game as they also have Disney Plus and many other elements in their business,” Sanchez said in the same interview. “We think it’s still attractive because the prospects for these destination parks are still pretty bleak. … Disney was the hottest park in the world before Covid. I think it will still be the hottest park after Covid.”

Disney will report the win after the bell on Thursday. Analysts expect a profit of 26 cents per share compared to 60 cents per share in the previous year. The parks and experiences segment accounts for 23% of total sales.

Disclosure: Lido holds Disney.

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