Why is the Webjet share price tailgating the ASX 200 today?

two older men wearing colourful tropical patterned shirts and hats like tourists puzzle over a map one is holding while he other holds up a hand as if indicating he doesn't know where they are going.two older men wearing colourful tropical patterned shirts and hats like tourists puzzle over a map one is holding while he other holds up a hand as if indicating he doesn't know where they are going.

The Webjet Limited (ASX: WEB) share price is trading 2.8% down today at $5.21. It started the session higher but has since crawled its way down to intraday lows.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) has lifted in afternoon trade and is 0.16 higher at 6,518.

More broadly, Webjet shares have whipsawed sideways these past six months. They are now trading roughly in line with their December 2021 levels.

What’s up with the Webjet share price?

ASX travel shares have gained momentum in recent days amid positive economic data showing travel spending is now above pre-COVID levels.

As the Motley Fool reported on Monday, the insights, from National Australia Bank Ltd (ASX: NAB), showed its customers spent 600% more on overseas travel in the 12 months to 1 May 2022.

In May 2022 alone, NAB customers spent $46 million on international flights, up from $43 million in 2019.

The Webjet share price also got a vote of confidence from Goldman Sachs. Its analysts reckon that Webjet is a buy, valuing the company at $6.90 per share in doing so.

The Goldman team say Webjet has a strong balance sheet and opportunities for growth, a recipe it likes.

Despite the positive reports, investors have punished the share in recent weeks, selling it down from a high of $6.13 on 8 June.

That’s after it had touched the $6.12 mark three times in the last three months, as seen on the chart below. In that time, it is down 5% after some wide volatility both ways.

TradingView Chart

This year to date, the Webjet share price has gained 1.16%. It is also up 2.95% over the past 12 months.

In comparison, the ASX 200 is down 12.48% year to date and 10.73% over the past year.

The post Why is the Webjet share price tailgating the ASX 200 today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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