12 Most Undervalued Travel Stocks to Buy According to Hedge Funds

10) Tripadvisor, Inc. (NASDAQ:TRIP)

Forward P/E Ratio as of 13 September: 8.82x

Number of Hedge Funds: 37

Tripadvisor, Inc. (NASDAQ:TRIP) operates as an online travel research company. It provides travel information, reviews, and opinions of members regarding destinations and accommodations, which includes hotels, bed and breakfasts, specialty lodging, and other activities.

Market experts believe that Tripadvisor, Inc. (NASDAQ:TRIP) remains well-placed to navigate the evolving landscape of online travel and restaurant reservations. Therefore, the company continues to focus on exploiting increased consumer activity in the post-pandemic era. Moreover, the company has a large, growing, and highly engaged network. This helps in creating a substantial barrier to competition.

Tripadvisor, Inc. (NASDAQ:TRIP) has been successful in building a strong platform for non-hotel reviews that focuses on restaurants and attractions. Therefore, the company creates a significant amount of value for the hotel channel, which it might capture financially. Nearly a decade ago, the company acquired a platform called Viator. The market players are now turning optimistic about Viator. They believe that Viator’s surging adoption provides Tripadvisor, Inc. (NASDAQ:TRIP) an underappreciated growth engine for the long term. The company continues to invest in its brand, product, and repeat bookings to drive LTV and improvements in unit economics.

In 2Q 2024, the company delivered revenue of $497 million and adjusted EBITDA of $97 million, or 20% of revenue. Tripadvisor, Inc. (NASDAQ:TRIP) delivered value via product innovation, and marketing efficiency, together with day-to-day execution. These measures are expected to drive long-term sustainable growth in revenue and profit as it builds a durable position throughout travel and experiences.

Analysts at Wedbush reaffirmed its “Neutral” rating and gave a price target of $21.00 on the shares of Tripadvisor, Inc. (NASDAQ:TRIP) on 7^th August. Tripadvisor, Inc. (NASDAQ:TRIP) was a part of 37 hedge fund portfolios at the end of Q2 2024, compared with 36 in the previous quarter, according to Insider Monkey’s database.