In this article, we take a look at the 12 most undervalued travel stocks, according to hedge funds.To see more such companies, please visit directly The 5 most undervalued travel stocks, according to hedge funds.
Despite rising inflation and challenging global market conditions, demand in the travel industry shows no signs of slowing down. In fact, according to estimates, the global travel industry he will experience significant growth in 2023. According to a Bloomberg report, global tourism in 2023 is expected to reach 95% from his 80% of pre-pandemic levels. Citing data from the United Nations World Tourism Organization, the report says the tourism industry will reach about 63% of its pre-pandemic level in 2022.
But the United Nations World Tourism Organization said travel patterns would be affected amid economic uncertainty and inflation. said they would be expected to stay near The report also says the Middle East and Europe will see the fastest growth in travel demand. These two regions are expected to catch up to pre-pandemic levels this year in terms of travel and tourism.
According to a Bloomberg report, a January 2023 sentiment survey by tourism market research firm Longwoods International found that nearly half of U.S. travelers expect economic pressures to influence their travel decisions within the next six months. said to have an impact. A whopping 56% of survey respondents said airfare was the biggest factor in the equation.
Photo by Hilmi Can Taşkıran on Unsplash
our methodology
For this article, we first used the Finviz stock screener to find stocks from the travel services and resorts & casinos industries in the consumer circulation sector. Obtaining a long list of stocks, he narrowed them down to those with an expected PE ratio of 20 or less as of January 27th. We then selected the 12 stocks with the highest number of hedge fund stakeholders from this resulting dataset. at the end of the third quarter. To find that indicator, we used Insider Monkey’s database of 920 hedge funds. Data for forward PE ratios were obtained from the Statistics tab of the Yahoo Finance pages of these companies.
The list is ranked by the number of hedge funds that have stakes in these companies.
12. Travelzoo (NASDAQ:Two)
Number of hedge fund holders: 5
PE ratio as of January 27: 6.98
Travelzoo (NASDAQ:TZOO) is a New York-based company with an interesting business model in the travel industry. Travelzoo (NASDAQ:TZOO) publishes deals related to travel, entertainment centers, restaurants and spas on its platform. Shares of Travelzoo (NASDAQ:TZOO) jumped as much as 9% in December after the company released strong guidance in the fourth quarter. Travelzoo (NASDAQ:TZOO) said it expects fourth-quarter revenue to grow 31% year-over-year to about $18.5 million. This easily beats the consensus, his $17.6 million.
Analysts believe Travelzoo (NASDAQ:TZOO) is diversifying its business model. Travelzoo (NASDAQ:TZOO) isn’t entirely dependent on the travel industry. Domestic entertainment activities are also thriving. Travelzoo (NASDAQ:TZOO) has 30 million members and partners with more than 5,000 travel agents.
11. BlueGreen Vacations Holding Corporation (NYSE:BVHMore)
Hedge fund holders: 13
PE ratio as of January 27: 8.8
Bluegreen Vacations Holding Corporation (NYSE:BVH) is a small player in the travel and vacation rental industry. BlueGreen Vacations Holding Corporation (NYSE:BVH) has a market capitalization of $715 million. Bluegreen Vacations Holding Corporation (NYSE:BVH) operates vacation resorts and vacation rentals. Bluegreen Vacations Holding Corporation’s (NYSE:BVH) GAAP EPS for the third quarter was $1.19, beating estimates by $0.12. Revenue for the period increased approximately 17% to a total of $250.8 million, exceeding estimates by $13.73 million. Bluegreen Vacations said its system-wide vacation ownership revenue grew 15 percent to $206.9 million from $180.6 million in the same period last year. The number of guest tours increased 11% in the quarter to 69,490.
A total of 13 hedge funds tracked by Insider Monkey have reported stakes in Bluegreen Vacations Holding Corporation (NYSE:BVH). The total value of these bets was approximately $22.1 million.
10. Playa Hotels & Resorts NV (NASDAQ:Praia)
Hedge fund holders: 27
PE ratio as of January 27: 17.14
Playa Hotels & Resorts NV (NASDAQ:PLYA) is a Virginia-based hotel and resort operator. In November, Playa Hotels & Resorts NV (NASDAQ:PLYA) announced third quarter results. Playa Hotels & Resorts NV’s (NASDAQ:PLYA) revenue for the period increased nearly 35% to $206.6 million, beating estimates by $10.01 million. Adjusted EPS for the quarter totaled $0.04, $0.02 below estimate.
A total of 27 hedge funds tracked by Insider Monkey reported having stakes in Playa Hotels & Resorts NV (NASDAQ:PLYA) as of the end of the third quarter. The total amount of those bets he made was $358 million.
9. Hilton Grand Vacations, Inc. (NYSE:HGV)
Number of hedge fund holders: 29
PE ratio as of January 27: 16.27
Hilton Grand Vacations Inc. (NYSE:HGV) is a Florida-based company that operates hotels and resorts worldwide. With a PE ratio of 16.27, Hilton Grand Vacations (NYSE: HGV) is one of the most undervalued travel stocks, according to hedge funds.
A total of 29 hedge funds tracked by Insider Monkey reportedly had stakes in Hilton Grand Vacations Inc. (NYSE:HGV) as of the end of the third quarter. The total value of these shares was approximately $1 billion.
8. TripAdvisor (NASDAQ:trip)
Hedge fund holders: 33
PE ratio as of January 27: 15.90
TripAdvisor (NASDAQ:TRIP) ranks eighth on the list of the most undervalued travel stocks, according to hedge funds. As of the end of the September 2022 quarter, 33 hedge funds are reported to have stakes in Tripadvisor, Inc. (NASDAQ:TRIP). The total value of these bets was approximately $799 million. TripAdvisor’s (NASDAQ: TRIP) largest stakeholder in this period was Paul Reader and Edward Shapiro’s PAR Capital Management, which gave TripAdvisor (NASDAQ: TRIP) his $199 million I own shares.
TripAdvisor’s (NASDAQ:TRIP) stock took a hit in November after the company reported weak third-quarter results. TripAdvisor management said it expects foreign exchange headwinds to also impact its fourth quarter results. Consolidated sales are expected to grow at a low-single-digit percentage from 2019. However, in the fourth quarter, Tripadvisor, Inc. (NASDAQ:TRIP) expects a “moderate” slowdown compared to the third quarter.
These concerns keep the valuation of Tripadvisor, Inc. (NASDAQ:TRIP) low. TripAdvisor (NASDAQ:TRIP) may be a decent destination for long-term investors.
GreenWood Investors specifically mentions Tripadvisor, Inc. (NASDAQ:TRIP) in its second quarter 2022 investor letter.
“TripAdvisor Inc. (NASDAQ:TRIP)’s world-class board has appointed a new CEO to optimize all aspects of its core business. Matt Goldberg’s background in The Trade Desk (TTD) and multiple consumer web properties (such as Lonely Planet) has helped him to hold the long-lauded TripAdvisor position as the world’s most-visited travel website. You are in a great position to monetize further. An exciting part of Matt’s mission is that he wants to make the core TripAdvisor great again with Hotel Auctions, the TripAdvisor Plus model and new advertising verticals he’s developed for hotels, restaurants and tour operators.
The travel season is undoubtedly in full swing this year, but there are even more legs on this rally. Americans are traveling abroad 30% less frequently than they did before COVID-19. This is the primary demographic of TripAdvisor traffic and purchase intent. As such, the market is concerned that certain travel businesses will see their revenue peak in 2022, while travel businesses that are focused on more international destinations, like TripAdvisor, thinks there is plenty of room. But the real advantage will come from TripAdvisor’s determination to extract value from his two fastest-growing supply-intensive properties, Viator and The Fork. Both platforms dominate their respective fields and are aggressively acquiring new customers. Viator’s experience offering is unparalleled in the world, currently processing twice as many transactions as he did pre-Covid. Considering that over 80% of his travel experiences are still booked offline, Viator looks as appealing as booking.com did decades ago. “
7. Travel + Leisure Co. (NYSE:TNL)
Hedge fund holders: 35
PE ratio as of January 27: 9.60
Travel + Leisure Co. (NYSE:TNL) ranks seventh on the list of most undervalued travel stocks, according to hedge funds. Travel + Leisure Co. (NYSE:TNL) sells vacation properties under a shared ownership model. Of the 920 hedge funds tracked by Insider Monkey at the end of the third quarter, 35 had stakes in Travel + Leisure Co. (NYSE:TNL). The total amount of those bets he made was $423 million. Travel + Leisure Co. (NYSE:TNL) is a dividend-paying company. Travel + Leisure Co. (NYSE:TNL) has a dividend yield of 3.82% as of Jan. 27. In November, Travel + Leisure Co. (NYSE: TNL) declared a dividend of $0.40 per share, similar to last time. quarterly dividend. The dividend was paid on December 30th.
6. Boyd Gaming Corporation (NYSE:BYD)
Hedge fund holders: 36
PE ratio as of January 27: 11.77
Boyd Gaming Corporation (NYSE:BYD), which operates hotels and casinos, is one of the biggest beneficiaries of the global travel recovery. Earlier this month, investment firm Credit Suisse began covering Boyd Gaming Corporation (NYSE:BYD) with an Outperform rating. Credit Suisse analyst Benjamin Chaiken praised Boyd Gaming Corporation’s (NYSE:BYD) growth opportunity in the iGaming industry. The company also cited Boyd Gaming Corporation’s (NYSE: BYD) 12.5x valuation of his 2024 free cash flow forecast as a bullish rating. Credit Suisse has set a $82 price target on Boyd Gaming Corporation (NYSE:BYD).
In December 2022, Boyd Gaming Corporation (NYSE:BYD) announced a dividend of $0.15 per share, as before. At the time, the forward dividend yield was 1.02%. Of the 920 hedge funds tracked by Insider Monkey, 36 had stakes in Boyd Gaming Corporation (NYSE:BYD).
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Disclosure: None. The 12 most undervalued travel stocks, according to hedge funds was first published on Insider Monkey.
