Why Is NEX Not Performing Now That We Can Travel?
National Express’s (LSE:NEX) stock hasn’t picked up much in recent months, despite UK travel beginning to open up again post-lockdown. But while many people in the UK associate National Express with UK camping trips and weekend getaways, the stock is still hampered by restrictions overseas.
Where Does National Express Operate?
Headquartered in the UK, National Express operates across the UK, Ireland, the US, Canada, Spain, Portugal, Malta, Germany, Bahrain, and Morocco.
Many of the countries that NEX operate in are still subject to COVID-19 restrictions, as well as being subject to quarantines for overseas travellers, which means that their usually booming tourist industries have yet to pick up.
While NEX might be back on the move in domestic markets where local travellers have more freedom of movement, the huge amount of lost income from international travel is responsible for NEX’s lacklustre performance in recent weeks.
Where Is The NEX Stock Heading?
For investors concerned that NEX lacks promise of further growth, there’s good news.
As the pandemic eases, with mass vaccinations rolling out across the world, international travel in most of NEX’s major markets should be opening up in the coming months.
The company has already weathered the worst that the pandemic has to offer, which should be a relief for current investors, and with key markets currently showing good vaccination rates (especially the UK and the US), there is no reason why NEX can’t return to former levels within the coming year.
What Does This Mean For Investors?
While long term investors will find this welcome news, short term investors might be less convinced.
The NEX stock has lacked volatility in recent months, which means there’s little room for making short term gains until the stock is poised for a quick rise.
While it doesn’t look likely that NEX will climb high in the next few weeks, investors looking to make a quick buck on NEX should keep an eye on international travel restrictions in NEX’s markets, because it will be this news that spells the potential for growth in this stock.
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