The Webjet Limited (ASX: WEB) share price jumped 5.6% yesterday and is now up 30% since last Monday. The Webjet share price has still been smashed in 2020 but is now seeing a strong recovery.
The big question for value investors is whether or not now is a good time to buy.
Image source: Getty Images
Why the Webjet share price is surging
This is a perplexing question. The Webjet share price is rocketing higher despite tight coronavirus restrictions across the country.
Prime Minister Scott Morrison was even quoted as saying internal borders may stay shut until Christmas.
That's not good news for the travel industry but hasn't stopped investors piling in to Webjet shares recently.
I believe some investors are thinking that part of the short-term danger has subsided.
It could be that large institutional backers are buying back in and betting that Webjet's insolvency risk is subdued.
Whatever the reason, the Webjet share price has a lot of momentum behind it right now. So, is it a good time to buy?
Are other ASX travel shares in the buy zone?
I think Corporate Travel Management Ltd (ASX: CTD) has more to offer than the Webjet share price right now.
The Aussie travel share jumped 4.4% higher yesterday and is now up 121.5% since 19 March.
One reason I prefer Corporate Travel to Webjet is its significant earnings from the business and government sector.
This has proven to be more resilient compared to leisure bookings. But it's not just Corporate Travel that I'd prefer to buy over Webjet right now.
Sydney Airport Holdings Pty Ltd (ASX: SYD) is another top travel share.
Sydney Airport straddles the line between travel and infrastructure given its significant underlying assets.
Shares in the Aussie airport are down 37.5% this year as the company taps investors for a $2 billion capital raising.
The group's half-year earnings report contained some soft numbers but that was largely to be expected in the current climate.
Foolish takeaway
I won't be buying into ASX travel shares just yet. I certainly don't like to invest in things I don't understand and the Webjet share price is one of those things.
I will, however, be keeping an eye out for the Aussie travel agency's full-year earnings report in August.
