Today I am focusing my attention on the TUI AG stock, which boasts impressive growth forecasts for the year 2024. At the center of this is the forecast of an increase in the operating result (EBIT) of 25%. Such growth, coupled with an attractive P/E ratio of only 7, signals a decisive phase for the company.

The driving force: Unceasing travel lust The pandemic has led to a rethink among consumers. Instead of material goods, leisure activities and, in particular, travel are now in the foreground. TUI has already recorded an occupancy rate of 14% for the summer of 2024. A strong signal, which is confirmed by statements from industry leaders such as the finance chief of Booking. Demand for cruises remains high and the expansion of TUI into the experience business promises additional growth.

Six-month chart for TUI AG Strong: TUI breaks through the red 200-day line after the blue 50-day line. (Source: Stock Screener)

TUI’s financial roadmap: Strong outlook and shrinking debt On December 6th, 2023, TUI released an excellent outlook for the year 2024. With a revenue growth of at least 10% and an EBIT increase of at least 25%, TUI demonstrates its financial strength. Impressive is also the debt reduction: Net debt could be reduced from 3.4 billion euros to 2.1 billion euros. Another reduction is expected in the new year due to the positive cash flow.

Summary and outlook: TUI on the road to success In summary, TUI is facing a promising year 2024. With strong demand for travel, efficient debt reduction and a strong EBIT growth forecast, TUI positions itself as an attractive investment. The sustained high demand for travel and the strategic expansion of the offer suggest that TUI will be successful not only in the short term, but also in the medium and long term. A P/E ratio of 7 and a positive development of the net result confirm this assumption.