12 Undervalued Cyclical Stocks to Buy Right Now

Page 7 of 11

5. Expedia Group, Inc. (NASDAQ:EXPE)

Forward P/E Ratio: 14.22

Earnings Growth: 21.56%

Number of Hedge Fund Holders: 52

Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company that allows users to plan and book their travel experiences. The company operates through its popular brands including Vrbo, Hotels.com, and Expedia. Its segments include B2B, B2C, and Trivago.

During the fiscal third quarter of 2024, the company improved its net bookings by 7% year-over-year to reach $27.5 billion. The improving trends in global travel are helping Expedia Group, Inc. (NASDAQ:EXPE), as a result, it grew its revenue by 3% year-over-year and also improved its net income by 61% during the same time.

On January 14, Brian Nowak, analyst at Morgan Stanley raised the price target on EXPE from $180 to $185, while keeping his Equal Weight rating on the stock. Nowak is bullish on the North American internet sector and believes that GPU and AI-related fundamental development will provide potential upside for these companies. Here’s what Carillon Chartwell Mid Cap Value Fund said about the company in its Q3 2024 investor letter:

“Expedia Group, Inc. (NASDAQ:EXPE) is an online travel services provider with several leading brands including Expedia, Hotels.com, and Vrbo. The company saw accelerating bookings growth at Expedia and a return to growth at vacation rental platform Vrbo.”

Page 7 of 11