12 Best Up and Coming Stocks To Buy According to Hedge Funds

4. Trip.com Group Limited (NASDAQ:TCOM)

Year-over-Year Revenue Growth in FQ3 2023: 95.2%

Year-over-Year Revenue Growth in FQ4 2023: 99%

Year-over-Year Revenue Growth in FQ1 2024: 29%

Number of Hedge Fund Holders: 49

Trip.com Group Limited (NASDAQ:TCOM) is a travel service provider and offers various travel-related services, including accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and more. It offers its services through different brands, namely Ctrip, Qunar, Trip.com, and Skyscanner. It is among the best up-and-coming stocks to buy according to hedge funds.

On May 21, Trip.com Group Limited (NASDAQ:TCOM) reported first-quarter earnings. The non-GAAP EPADS beat the estimates by $0.26 at $0.83. The company’s revenue surged 23.1% year-over-year to $1.6 billion. The company’s domestic hotel and air ticket bookings grew by 20% to 30% year-over-year. According to its management, the inbound travel to China has seen a notable resurgence, with a staggering 400% increase in bookings year-over-year. This growth is supported by China’s proactive visa-free policies for citizens of multiple countries, including prominent European nations. Initiatives like free city tours for layover travelers at Shanghai Pudong International Airport demonstrate Trip.com Group Limited’s (NASDAQ:TCOM) commitment to make the inbound travel experience better and unlock new avenues for revenue growth.

While Trip.com Group Limited (NASDAQ:TCOM) is trading at a slightly higher multiple at 22.6x compared to the S&P 500’s 21x, the company’s earnings per share are expected to increase substantially in 2024. Analysts polled by Yahoo Finance expect the company’s EPS to grow by 13.5% in 2024 and 28.5% in 2025, compared to 2023 levels.

In Q1, hedge funds were bullish on Trip.com Group Limited (NASDAQ:TCOM) as hedge funds with investments in the stock were 49 in the quarter, with positions worth $1.354 million. This is compared to 40 funds with positions worth $1.136 billion in the preceding quarter. Kontiki Capital is the largest shareholder in the company, as of March 31, with a position worth $198.55 million.