The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Sabre (NASDAQ: SABR) and the rest of the consumer discretionary - travel and vacation providers stocks fared in Q1.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Travel and vacation providers operate tour packages, cruise lines, online travel agencies, and vacation rental platforms, connecting consumers with leisure and business travel experiences. Tailwinds include robust post-pandemic travel demand, a consumer preference shift toward experiences over goods, and technology-enabled personalization improving conversion and loyalty. However, headwinds are significant: the industry is acutely sensitive to macroeconomic cycles, geopolitical instability, and fuel price volatility. Low switching costs mean fierce price competition, while capacity additions in segments like cruises can lead to oversupply. Regulatory burdens, weather disruptions, and public health risks further create episodic but potentially severe demand shocks.

The 19 consumer discretionary - travel and vacation providers stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 9.3% below.

Luckily, consumer discretionary - travel and vacation providers stocks have performed well with share prices up 19.6% on average since the latest earnings results.

Best Q1: Sabre (NASDAQ: SABR)

Originally a division of American Airlines, Sabre (NASDAQ: SABR) is a technology provider for the global travel and tourism industry.

Sabre reported revenues of $760.3 million, up 8.3% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS and adjusted operating income estimates.

Interestingly, the stock is up 8.2% since reporting and currently trades at $1.98.

Is now the time to buy Sabre? Access our full analysis of the earnings results here, it’s free.

Target Hospitality (NASDAQ: TH)

Building mini-communities at places such as oil drilling sites, Target Hospitality (NASDAQ: TH) is a provider of specialty workforce lodging accommodations and services.

Target Hospitality reported revenues of $72.78 million, up 4.1% year on year, falling short of analysts’ expectations by 0.6%. However, the business still had a very strong quarter with full-year EBITDA and revenue guidance exceeding analysts’ expectations.

Target Hospitality achieved the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 24% since reporting. It currently trades at $19.01.

Is now the time to buy Target Hospitality? Access our full analysis of the earnings results here, it’s free.

Delta (NYSE: DAL)

One of the ‘Big Four’ airlines in the US, Delta Air Lines (NYSE: DAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

Delta reported revenues of $15.85 billion, up 12.9% year on year, exceeding analysts’ expectations by 4%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.

Interestingly, the stock is up 26.8% since the results and currently trades at $83.19.

Read our full analysis of Delta’s results here.

American Airlines (NASDAQ: AAL)

One of the ‘Big Four’ airlines in the US, American Airlines (NASDAQ: AAL) is a major global air carrier that serves both business and leisure travelers through its domestic and international flights.

American Airlines reported revenues of $13.91 billion, up 10.8% year on year. This number topped analysts’ expectations by 0.6%. It was a strong quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 36.6% since reporting and currently trades at $15.71.

Read our full, actionable report on American Airlines here, it’s free.

Hilton (NYSE: HLT)

Founded in 1919, Hilton Worldwide (NYSE: HLT) is a global hospitality company with a portfolio of hotel brands.

Hilton reported revenues of $2.94 billion, up 9% year on year. This print lagged analysts’ expectations by 1.4%. Taking a step back, it was a mixed quarter as it also logged a decent beat of analysts’ adjusted operating income estimates.

Hilton had the weakest performance against analyst estimates among its peers. The stock is up 5.4% since reporting and currently trades at $350.31.

Read our full, actionable report on Hilton here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.