7 Cheap Travel Stocks to Buy According to Analysts

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

Average Upside Potential: 8.24%

Forward P/E as of September 27: 16.37x

Number of Hedge Fund Holdings: 52

Trip.com Group Limited (NASDAQ:TCOM) operates as a travel service provider for accommodation reservations, transportation ticketing, corporate travel management, and other travel-related services.

Trip.com Group Limited (NASDAQ:TCOM)’s market share is expected to be improved by effective execution, supply chain improvements, enriched content offerings, and strong service quality. The company should also benefit from increased demand for higher-margin outbound travel. While the company’s growth trajectory is expected to be aided by healthy strategic partnerships and digital initiatives, its revenue growth should stem from a stable labor market, healthy consumer spending, and increased disposable income.

Market experts opine that China’s consumers have been pivoting their spending toward services instead of products and goods. Notably, Trip.com Group Limited (NASDAQ:TCOM) has been tagged as the best-in-class company in China providing travel services. While Trip.com Group Limited (NASDAQ:TCOM) focuses on leveraging the potential of AI to revolutionize the broader travel industry, the upcoming quarters are expected to be aided by strong travel demand, primarily for cross-border travel.

China’s proactive visa-free policies for the citizens of multiple countries, which includes prominent European nations, should continue to act as critical tailwinds for Trip.com Group Limited (NASDAQ:TCOM)’s growth. In Q2 2024, the company saw a net revenue of RMB12.8 billion (US$1.8 billion), reflecting a 14% increase from the same period in 2023. Its net revenue for Q2 2024 went up by 7% as compared to the previous quarter, mainly because of stronger travel demand, primarily during holiday periods.

Benchmark reaffirmed a “Buy” rating on the shares of Trip.com Group Limited (NASDAQ:TCOM), setting a price target of $72.00 on 27th August.