It turns out our little social experiment is supported by tons of studies, including a recent Expedia (Nasdaq:
EXPE) report that showed Millennials travel frequently, typically in groups, and don't like to spend much money, but want to look like they did.
Immediately, I started thinking about how traders could capitalize on these trends. How does one travel on the cheap, look like they've spent a million bucks, and get plenty of photo ops along the way?
The first thing that came to my mind was cruise lines. For around $1,000, you can spend a week eating and drinking like a king, visiting exotic locations and making amazing memories (while posting about them on social media). Plus, cruises offer a generally safe environment where you can meet tons of other travelers.
With this in mind, I was curious to see just how the cruise sector was performing. I know global terrorism and the Zika virus scare had taken their toll, but it had been a while since I dug into the actual charts and fundamentals.
There was certainly a lot to love. And I found one company in particular whose shares have the potential for some serious upside. Its current forward price-to-earnings (P/E) ratio is near its 20-year lows, and analysts' consensus price target is almost 50% above recent prices.