The U.S. dollar index is keeping near its highest level since 2002 and there sure are stocks that stand to benefit from that, says Courtney Garcia. She’s a Senior Wealth Advisor at Payne Capital Management.
How to play the strong U.S. dollar?
One such name that’s pop out to her is Booking Holdings Inc (NASDAQ: BKNG) that’s down roughly 35% for the year. Explaining why this afternoon on CNBC’s “The Exchange”, she said:
I think Booking Holdings can be really interesting here. Travel I think we’ve seen that demand is not slowing down in general even with inflation picking up. And what’s happening with the Dollar and the Euro, BKNG only stands to benefit.
Last week, the travel technology company said it was not seeing any “ancillary” effect from a 40% increase in air fares over the past six months.
China reopening could benefit Booking stock
Booking Holdings generates a good chunk of its revenue from Europe, but have recently started penetrating China as well, which, as per Garcia, is another reason to be bullish on the stock. She noted:
China long-term is a great beneficiary with the population they have. Short-term, they are starting to open up after COVID restrictions which will increase demand and Booking Holdings Inc will be a great beneficiary of that.
In May, Booking Holdings Inc reported its results for the fiscal first quarter that handily topped Wall Street estimates. Wall Street, on average, sees a 50% upside in the stock from here.
The post Courtney Garcia: this stock stands to benefit from strong U.S. dollar appeared first on Invezz.
Source: https://invezz.com/news/2022/07/05/courtney-garcia-this-stock-stands-to-benefit-from-strong-u-s-dollar/