As the COVID-19 pandemic gradually winds down (hopefully) in 2021, it should be a positive catalyst for most sectors of the stock market. But there are some stocks that could perform especially well. In this Nov. 25 Fool Live video clip, Fool.com contributors Matt Frankel, CFP, and Brian Feroldi discuss three stocks that could perform especially well in a post-pandemic world that are trading at significant discounts to their pre-COVID levels.
Matthew Frankel: So looking at the Q&A Brian, not-you, another Brian asked, so where are the best opportunities in each area today? I will give you my favorite bank and real estate stock. Maybe while I'm doing that, Brian can think of his favorite travel stock to share with you. My personal favorite bank stock is Bank of America (NYSE:BAC). It's been my largest bank holding for some time, not just because it's Warren Buffet's favorite bank stock. Just so I think their management, especially Brian Moynihan has done a fantastic job of reducing expenses, improving asset quality, and just making it an all-around better bank. If you look over the past few years, it's grown faster than its peers. Its efficiency has improved more than its peers. Its profitability has improved the levels that would've seemed laughable after the financial crisis when you look at Bank of America. So on the banking side I like that. In terms of real estate, Empire State Realty Trust (NYSE:ESRT), the one I mentioned before, is still one of my favorites. It's still down about 30% for the year. For a good reason, people are still curious if New Yorkers are going to return to offices after all this. But I think it's trading for a big discount to its net asset value, and I think it still has a lot more room to run in a vaccine situation. So Brian, what's your favorite travels stock right now?
Brian Feroldi: Only one, and that is Booking Holdings (NASDAQ:BKNG).
Matthew Frankel: Okay, here you go.
Brian Feroldi: Its ticker symbol, BKNG.
Matthew Frankel: I knew you would say that.
Brian Feroldi: I would not be in a rush to buy it at all. I think it's a sensational company. There's a lot going for it at today's price, and given the company's growth expectations, I think it's going to take time for this company to get back to where it was. It's not that it's a bad business, it's a great business. But the stock is fully recovered and it's going to be two more years at least until this thing starts posting all-time high growth. If I was forced to pick a stock in the travel industry, I would pick a booking, but it's probably my 150th favorite idea right now.