TravelCenters of America Inc. (TA - Get Rating) in Westlake, Ohio, operates, or franchises, travel centers, standalone truck service facilities, and a standalone restaurant. Its travel centers offer a range of products and services that include diesel fuel, gasoline, truck repair and maintenance services, quick-service restaurants, full-service restaurants, and others. Its travel centers operate under the brand names of TravelCenters of America, TA, TA Express, Petro Shopping Centers, and Petro.

On April 4, 2022, TA announced the completion of its acquisition of two travel center locations located along the Interstate 81 corridor in Virginia–Petro Raphine and TA Lexington–in time for the summer driving season. Both have been successful TA franchise locations since 2011 and, by owning these locations, TA expects to realize significantly higher cash flows.

Memorial Day typically kicks off the summer driving season. In the absence of pandemic-related restrictions, Americans look set to hit the road in large numbers this year despite skyrocketing gasoline prices. Growing consumer spending and pent-up demand suggest a busy summer driving season ahead. According to the Energy Information Administration, the average U.S. household will spend $2,945 on gasoline in 2022, 18% higher than in 2021. The report also forecasts that U.S. gasoline consumption from April through September 2022 will average 9.20 million b/d, up 75,000 b/d from 2021.

TA stock has gained 45.2% in price over the past year and 25.4% year-to-date to close the last trading session at $38.87.

Here is what could influence TA’s performance in the upcoming months:

Robust Financials

TA’s total revenues increased 58% year-over-year to $2.03 billion for the fourth quarter, ended Dec. 31, 2021. The company’s adjusted net income increased 813.7% year-over-year to $13.18 million. Also, its adjusted EPS came in at $0.89, representing a 423.5% increase year-over-year. In addition, itsTA - Get Rating) Stack Up Against its Peers?

TA has an overall POWR Rating of A, equating to a Strong Buy rating. Check out these other stocks within the Specialty Retailers industry with an A (Strong Buy) or B (Buy) rating: The ODP Corporation (ODP - Get Rating), Canadian Tire Corporation, Limited (CDNAF - Get Rating), and NEXT plc (NXGPY - Get Rating).

Click here to checkout our Retail Industry Report for 2022

TA shares were trading at $38.58 per share on Monday morning, down $0.29 (-0.75%). Year-to-date, TA has declined -25.26%, versus a -7.56% rise in the benchmark S&P 500 index during the same period.

About the Author: Dipanjan Banchur

Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...

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