For the first time in seven years, the United States is preparing for a solar eclipse. As NASA reports that we won’t be seeing another one until August 2044, the entire country is gearing up to witness this historic event. For just about everyone, this means procuring the proper glasses but for many, it has meant making travel arrangements. We may not instantly equate the solar event with being an economic growth driver, but several companies have been rising steadily as momentum for the eclipse has fueled tourism plans, causing consumers to book airline tickets and lodging. With this in mind, it’s worth a look at the best stocks to buy for the 2024 solar eclipse.
As InvestorPlace‘s Shrey Dua notes:
“…stocks do tend to perform quite well in total solar eclipse years. Indeed, in 10 of the past 13 solar eclipse years from 1900 to 2017, the Dow Jones Industrial Average went on to close the year in the green — sometimes by notable margins.”
Dua is careful to highlight that these metrics do not imply a direct correlation between a solar eclipse and significant stock market growth. But what we do know is that some companies are enjoying the momentum that stems from the focus on the historic event. For investors seeking ways to profit from the eclipse, the best way could be through some of these stocks.
Stocks to Buy: Airbnb (ABNB)
It’s been a difficult month for this iconic homestay innovator. Airbnb (NASDAQ:ABNB) has spent the past year riding the travel rebound wave despite recent volatility. Now, it seems that the company may be about to see the resurgence it needs. Barron’s reports that Airbnb has seen searches for home and apartment rentals that fall in the eclipse’s pathway surge by 1,000% recently. Clearly there are a lot of people willing to plan an entire trip around witnessing the eclipse. While shares have dipped slightly this week, that doesn’t mean that ABNB stock won’t see a surge from eclipse traffic.
Alaska Air Group (ALK)
If people are booking Airbnb homestays, they are also likely buying airline tickets to states in the eclipse path. One airline has confirmed that demand for tickets to eclipse path states has been rising. Alaska Air, owned by Alaska Air Group (NYSE:ALK), has confirmed that flight bookings in Ohio, Texas and Mexico, three areas in prime eclipse territory, have increased by 3x recently, indicating a clear spike in demand for transportation to states where the eclipse viewing will be at its best. This company may not be the first name that comes to mind among airline stocks to buy for significant growth in 2024. However, Alaska Air operates in a region that sets it up perfectly to enjoy the eclipse boost.
Stocks to Buy: Campbell Soup Company (CPB)
While many people are excited by the thought of the eclipse, events like this often scare others. Some see it as a sign of a pending apocalypse, a grim harbinger of catastrophic things to come. And any time the apocalypse is trending, a certain group of stocks comes sharply into focus.
At the forefront is the Campell Soup Company (NYSE:CPB), a well-known brand that produces something built to withstand a literal apocalypse. Campbell’s soups last forever, can be stored easily, and are still affordable, even in times of inflation. Consumers will stock up on them anytime they fear the end may be approaching. This makes CPB a clear choice among stocks to buy for any event that could theoretically be would-ending, even when strong evidence points to the contrary.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
