13 Most Undervalued NASDAQ Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 72

Forward P/E Ratio as of March 12: 12.52

Expedia Group, Inc. (NASDAQ:EXPE) is an online travel company serving customers in the US and worldwide. It operates through its B2C, B2B, and Trivago segments, providing travel-related services such as lodging, flights, and partnerships with different travel and non-travel businesses, including airlines, travel agents, and online retailers. On March 3, Expedia Group announced a partnership with major airlines like Hawaiian Airlines, Avianca, and Turkish Airlines to tap into growing demand as air travel is expected to reach 5.2 billion passengers this year. Its Flights Sponsored Listings played a role in driving an 8% rise in ticket sales and a 10% increase in booking value for participating airlines.

Expedia Group, Inc. (NASDAQ:EXPE) ended 2024 on a strong note, with fourth quarter revenue reaching $3.2 billion, a 10% increase driven by a 21% growth in its B2B segment. Revenue growth also accelerated by seven percentage points from the previous quarter, supported by Vrbo’s steady booking momentum throughout the year and continued improvements at Hotels.com. The company generated $2.3 billion in free cash flow, up 26% year-over-year, mainly due to higher EBITDA, growth in deferred merchant bookings, and lower capital expenditures. With this strong cash flow, Expedia closed the quarter with $4.5 billion in unrestricted cash and short-term investments. It ranks 10th among our list of the most undervalued stocks.

Among the hedge funds tracked by Insider Monkey, 72 funds were bullish on Expedia Group, Inc. (NASDAQ:EXPE) at the end of Q4 2024, compared to 52 funds that invested in the stock in the prior quarter. Windacre Partnership was the largest shareholder of the company, with 4 million shares valued at $757.5 million.