2 Stocks to Watch Amid Royal Wedding Fever

Will this weekend's nuptials be a boon for travel stock TRIP?

May 18, 2018 at 2:10 PM
facebook X logo linkedin


Unless you've been living under a rock, you're probably aware that Britain's Prince Harry and American actress Meghan Markle are getting married at Windsor Castle this weekend. The couple's nuptials are expected to inject more than $1.4 billion into the U.K. economy, with much of that stemming from tourism -- a possible boon for travel stock TripAdvisor Inc (NASDAQ:TRIP). Meanwhile, Dunkin Donuts parent Dunkin Brands Group Inc (NASDAQ:DNKN) is giving a nod to the couple with a limited-time offering of the Royal Love Donut. And, perhaps more importantly, both TRIP and DNKN stocks have quietly muscled higher lately, and could attract more bulls.

Many people -- namely American anglophiles -- have paid big bucks to travel to England for the festivities. That could be good news for TripAdvisor. Earlier this month, the stock gapped higher on well-received earnings, and is now attempting to find support in the $46-$48 area -- a neighborhood that's acted as resistance in the past. TRIP shares were last seen trading around $48.25, up more than 57% in the past six months.

trip stock chart

A short squeeze could help TRIP extend its breakout, too. Short interest represents nearly 19% of the stock's total available float, or more than two weeks' worth of pent-up buying demand, at the security's average trading volume.

Plus, analysts have yet to capitulate. Despite TRIP stock's surge in 2018, just one analyst considers it worthy of a "buy" or better rating, compared to 22 brokerage firms maintaining tepid "hold" or worse recommendations. A round of upgrades could also lure more buyers to the table.

Will Dunkin make a killing on its Royal Love donut? Probably not, but the stock is still worth watching -- especially as there's plenty of room on the bullish bandwagon.

Dunkin Brands stock touched a record high of $68.45 in late January, before pulling back in the broader stock market correction. However, DNKN shares found support in the form of their 200-day moving average, and they've now added more than 15% in the past six months. At last check, Dunkin stock was fairly close to its all-time high -- and back in the black on a year-to-date basis -- docked at $65.82.

DNKN stock chart

As with TRIP, Dunkin stock has yet to convince the skeptics. Short interest grew 14.5% in the most recent reporting period, and now accounts for 14% of the stocks' float. At DNKN's average pace of trading, it would take almost two weeks to repurchase these pessimistic positions -- plenty of fuel for a short-covering rally.

Meanwhile, not even half of the 18 analysts following the breakfast concern deem it worthy of a "buy" endorsement. Upgrades in the wake of DNKN's recent rally could be a tailwind for the shares.

What's more, an unwinding of skepticism in the options pits could also be a boon for Dunkin. The stock's Schaeffer's put/call open interest ratio (SOIR) sits at 2.19 -- at the very top of its annual range. This indicates that near-term options traders haven't been more put-biased on DNKN in the past year.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI