Python for Finance: Analyzing Stock Portfolio Analyses for Airlines, Hotel Chains and top Start ups in pandemic duration Part 1

Stock Portfolio Analyses

In this data science project with Python, I use Yahoo Finance API, pandas, and matplotlib to show you how the stock market is being hit by COVID-19 . I Compared 3 industries for my analysis : Airlines, Hotel chain and successful startups founded during 2008 recession. I will share my code in GitHub soon. This analysis has 3 parts including : stock price, cash flow and financial ratio analysis. The stock market has responded to the COVID-19 pandemic with worrying volatility, as traders have panic-sold out of fear. In these article I will peresnt which companies from those industries can cope with COVID-19 pandemic better with their financial portfolio.

1. Overview of American Airlines and benchmarking their stocks performance together

The COVID-19 Pandemic Slams Into Airlines. The airlines have been severely disrupted by the pandemic, with the global industry expected to lose more than $100 billion in revenue in 2020 due to travel bans and plummeting demand. Airlines cancel flights and lay off workers as their shares plummet.

1.1 FIND, IMPORT Libraries AND downloading the last 2 months stock prices DATA WITH YFINANCE (PYTHON)

After importing libraries. I will grabbing the data from Yahoo Finance using download method. In this section, I am comparing Delta(DAL), South West( LUV), United(UAL) and AAL(American Arilines). I am setting interval of 1 week for the last 2 months to show the trend of stock price.

data = yf.download("DAL LUV UAL AAL", interval = "1wk", start="2020-02-01",                                        end="2020-04-06",
                   group_by="ticker")

1.2 Data Visualization and PLOT The Last 2 Months FINANCIAL DATA WITH matplotlib

There so many open, close, adjusted close , close prices for each stock price, I just filter the close price. There are two plots which compare multiple stocks in python.

As you see above, All for Airlines companies' stock drop harshly in the last 2 months . They experienced rapid decrease, United Airlines(UAL) saw highest drop by 72%, on the other hand South West(LUV) saw the lowest decrease with 50% . Those four stocks follow the same pattern in given time.

2. Overview of Hotel Chain Brands and benchmarking their stocks performance together

Hotel stocks have lost roughly half their value over the past month as hotel companies face steep drops in demand due to COVID-19. As the hotel industry is impacted by the global outbreak, share prices have also realized a significant slump. In the U.S., an estimated $1.4B in revenue is vanishing each week.

2.1. Overview of Hotel Chains Brands and benchmarking their stocks performance together

I would like to present the effect of this pandemic on Hotel chain. I selected these brands: Hyattt Hotel(H), Choice Hotel International(CHH), Huanzhu Group(HTHT), Marriott Hotel(MAR) and Hilton(HLT). I will download the stock data for the same time and interval for hotel industry.

data2 = yf.download("H CHH HTHT HLT MAR", period = "ytd",interval = "1wk", start="2020-02-01", end="2020-04-06",
                   group_by="ticker") 

2.2. Data Visualization

One one hand, the stock prices follow the same trend and they lost 50% to 60% of their value. One the other hand, it is interesting that traders moved strongly to Marriott (MAR) and Hotel(HLT)'s stocks in compare to others. This means traders trust on health of Hilton Hotel(HLT) and Marriott (MAR) finance market.

3. Analyzing stock prices of Successful STARTUPS founded during 2008 Great Recession

American workers took a hard hit after the 2008 recession, but a wave of new startups emerged from the financial downturn. Most of them is based on E-Commerce , mobile application, Social media and digital marketing solutions. Behavioral changes after pandemic could mean more opportunities for entrepreneurs to provide meaningful services. We can learn lessons from 2008 recession how those business plans lead to real business outcomes, like revenue and profit. Some of those successful brands(Whats up, Instagram) required by big companies like Facebook and Google.

3.1 Overview of Startups and benchmarking their stocks performance together

I selected these 5 top success startups to compare their stock prices : Slack(WORK), Groupon(GRPN), Zendesk(ZEN), Uber(UBER) and Venmo(PYPL)

data3 = yf.download("GRPN ZEN PYPL WORK UBER", period = "ytd",interval = "1wk", start="2020-02-01", end="2020-04-06",
                   group_by="ticker") 

3.2. Data visualization for Startups

As demonstrated above, This group of companies are more stable and reliable in compare to the previous industries. The pandemic didn't hit the stocks price and the leveled off the prices. As rising markets on increasing volume on Uber(UBER ) are typically viewed as strong and healthy. Traders believe on the future of Uber(UBER) more than others.

Conclusion

Biggest transfer of wealth in US History has now begun. However long the economic downturn of 2020 last, we will face new wave of startups and move of capital from some industries to other. It is very hard to reach to conclusion for the future of those companies stock price. In next articles, I will analyze the health of financial and corporation value with benchmarkting their cash statement and financial ratio in the next parts.