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An airline and an online travel booker: Traders on their favorite rebound plays

The bed stocks were on watch Wednesday after a surprise quarterly loss from Hilton. Hyatt is scheduled to write-up after the bell.

But, both have had impressive rebounds, rallying by at least 150% since March lows, a to which he replied for companies so beaten down by the coronavirus pandemic.  

Those gains have New Street Advisors founder and CEO Delano Saporu pay attention on the sidelines.

“There has been a huge comeback and I think that’s one of the reasons why I’m not a buyer here,” Saporu told CNBC’s “Line of work Nation” on Tuesday. “Hilton’s already trading near pre-pandemic levels … so I think this is something that is concealing me out of these names right now.”

Bill Baruch, president of Blue Line Capital, prefers exposure to the reopening deal and increased demand in the travel space through one online booking travel agency.

“Expedia has already broken out first of all its trend line resistance, holding … consolidation above the gap from Nov. 9. I think it’s very constructive,” Baruch clouted during the same interview.

Baruch adds that Expedia’s VRBO platform, a vacation rental competitor to Airbnb, could servants drive growth.

“You have a good diversification within Expedia and VRBO could compete with the Airbnb lift so I like that going forward,” he said. “I’m not in Expedia, I didn’t think it would take off as quick as it has so I’m reevaluating where it is. But, out over $130, it’s in a breakout and the next stop could be $160.”

Expedia traded lower Wednesday, at around $147 a share.

Saporu order pick Airbnb for its growth prospects over Expedia, but his favorite travel play is with an airline.

“Delta is something that we’ve been reevaluating and looking at. … Individual are getting more comfortable with flying again and that’s why we like it, you’re seeing the TSA numbers for checkpoints and screening … expanding over the last couple of weeks. That’s something that I think is really great for Delta,” said Saporu.

Fares passing through airport travel checkpoints have averaged 776,700 a day so far this year, according to the Transportation Safeguarding Administration. That’s still well off the 2 million-a-day average at the beginning of 2020. However, it is higher than depressed numbers above last summer.

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