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In this article, we will look at 12 travel stocks that are very low-cost to buy according to hedge funds. Go directly to see more such companies 5 Most Undervalued Travel Stocks to Buy According to Hedge Funds.
Despite rising inflation and difficult market conditions worldwide, demand in the travel industry is showing no signs of slowing down. In fact, estimates suggest that the global travel industry will experience significant growth in 2023. According to a Bloomberg report, global tourism is expected to reach 80 to 95 percent of pre-pandemic levels in 2023. The report, which cited information from the United Nations World Tourism Organization, stated that By 2022, the tourism industry will reach 63% of its pre-pandemic level.
But the United Nations World Tourism Organization says travel strategies will be affected by financial risks and inflation. For example, the United Nations says travelers are expecting more value for money and closer to home this year. The report also indicated that travel demand growth in the Middle East and Europe will be faster. In terms of travel and tourism, these two regions are expected to reach pre-pandemic levels this year.
According to Bloomberg, a January 2023 survey from tourism market research firm Longwoods International found that financial pressures will affect travel decisions in the next six months for nearly half of U.S. travelers. 56% of survey respondents said air travel was the biggest reason.
Photo by Hilmi Can Taşkıran on Unsplash
Our method
For this article, we first used the FinViz stock filter to find stocks from the consumer cyclical sector, travel services and resorts and casinos industries. As of January 27, we have narrowed down the list of stocks to only those with a PE ratio of 20 or below. We then selected 12 stocks from the resulting data set with the highest number of hedge fund stakeholders. The end of the third quarter. We used Insider Monkey’s database of 920 hedge funds to find that benchmark. Transfer PE ratio data was taken from the “Statistics” tab of these companies’ Yahoo Finance pages.
The list is ranked by the number of hedge funds that have stakes in these companies.
12. Travelzoo (NASDAQ:TZOO)
Number of Hedge Fund Holders: 5
PE ratio from January 27: 6.98
Travelzoo ( NASDAQ:TZOO ) is a New York-based company in the travel industry with an interesting business model. Travelzoo (NASDAQ:TZOO) publishes deals related to travel, entertainment centers, restaurants and spas on its platforms. In December, Travelzoo (NASDAQ: TZOO ) stock jumped as much as 9% after Travelzoo (NASDAQ: TZOO ) posted strong guidance for the fourth quarter. Travelzoo ( NASDAQ:TZOO ) said it expects its Q4 revenue to come in at around $18.5 million, up 31% Y/Y. This easily beats the $17.60 million deal.
Analysts believe Travelzoo’s (NASDAQ:TZOO) business model is diverse. Travelzoo (NASDAQ:TZOO) is not entirely based on the travel industry. It also grows on domestic entertainment activities. Travelzoo (NASDAQ:TZOO) has a whopping 30 million members and works with more than 5,000 travel suppliers.
11. Bluegreen Vacations Holdings Corporation (NYSE:BVH)
Number of Hedge Fund Holders: 13
PE ratio from January 27: 8.8
Bluegreen Vacation Holdings Corporation (NYSE:BVH) is a small player in the travel and vacation rental industry. The market cap of Bluegreen Vacations Holdings Corporation (NYSE:BVH) is $715 Million. Bluegreen Vacation Holdings Corporation (NYSE:BVH) operates vacation resorts and vacation rentals. Bluegreen Vacations Holdings Corp. (NYSE:BVH)’s third-quarter GAAP EPS came in at $1.19, beating estimates by $0.12. Revenue for the period rose 17 percent to $250.8 million, beating estimates by $13.73 million. Bluegreen Vacations said sales of its system-wide vacation ownership interests rose 15 percent to $206.9 million from $180.6 million in the prior quarter. The number of guest visits increased by 11 percent in the quarter to 69,490.
Thirteen hedge funds tracked by Insider Monkey reported their stake in Bluegreen Vacation Holdings Corporation (NYSE:BVH). The total value of these shares was approximately $22.1 million.
10. Playa Hotels & Resorts NV (NASDAQ:PLYA)
Number of Hedge Fund Holders: 27
PE ratio from January 27: 17.14
Playa Hotels & Resorts NV (NASDAQ:PLYA) is a Virginia-based operator of hotels and resorts. In November, Playa Hotels & Resorts NV (NASDAQ:PLYA) released its third quarter results. Playa Hotels & Resorts NV (NASDAQ:PLYA)’s revenue for the period rose nearly 35% to come in at $206.6 million, beating estimates by $10.01 million. Adjusted EPS for the quarter totaled $0.04, missing estimates by $0.02.
A total of 27 hedge funds reported their holdings in Playa Hotels & Resorts NV (NASDAQ:PLYA) as of the end of the third quarter, according to Insider Monkey. The total value of these shares was $358 million.
9. Hilton Grand Vacations Inc. (NYSE:HGV)
Number of Hedge Fund Holders: 29
PE ratio from 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 Inc
According to Insider Monkey, a total of 29 hedge funds invest in Hilton Grand Vacations Inc. (NYSE:HGV) reported a dividend through the end of the third quarter. The total value of these shares was about $1 billion.
8. Tripadvisor, Inc. (NASDAQ:road trip)
Number of Hedge Fund Holders: 33
PE ratio from January 27: 15.90
Tripadvisor, Inc. (NASDAQ: TRIP ) ranks No. 8 on our list of the most undervalued travel stocks to buy according to hedge funds. As of the end of the September 2022 quarter, 33 hedge funds in TripAdvisor, Inc. (NASDAQ: TRIP) reported that they have a stake in The total value of these shares was approximately $799 million. During this time, TripAdvisor, Inc. (NASDAQ: TRIP )’s largest shareholder is Paul Reeder and Edward Shapiro PAR Capital Management, which is owned by TripAdvisor, Inc. (NASDAQ: TRIP ) with a stake of $199 million.
After the company posted weak Q3 results, Tripadvisor, Inc. (NASDAQ: TRIP ) shares took a big hit in November. TripAdvisor management said FX headwinds are expected to impact its fourth-quarter results. Consolidated revenue is expected to increase by a low single-digit percentage from 2019. However, in the fourth quarter, Tripadvisor, Inc. (NASDAQ: TRIP ) expects a “modest” slowdown compared to the third quarter.
These risks are the responsibility of TripAdvisor, Inc. (NASDAQ: TRIP ) are making speculation a concern. Tripadvisor, Inc. (NASDAQ: TRIP ) could be a good go-to pick for long-term investors.
Greenwood Investors wrote about Tripadvisor, Inc. in its Q2 2022 investor letter. (NASDAQ: TRIP ) had to say:
“Tripadvisor, Inc. (NASDAQ: TRIP ) World Class Board has appointed a new CEO to overhaul each of its major operations — a long overdue one. Matt Goldberg’s history with The Trade Desk (TTD) and several direct-to-consumer web properties (such as Lonely Planet) have leveraged TripAdvisor’s long-standing reputation as the world’s most visited travel site to better monetize it. The exciting part of Matt’s mission is that he wants to reinvent Core TripAdvisor, with hotel bidding, the TripAdvisor Plus model, and a new advertising vertical for hotels, restaurants and tour operators.
This year’s travel season is absolutely on fire, but there are plenty of legs to this lineup. Americans are traveling abroad 30 percent less than before Covid. This is a key demographic for TripAdvisor traffic and purchasing purposes. So, while the market is worried that some travel businesses will experience high revenue in 2022, we believe there is a lot of room for international destination-focused sites like TripAdvisor to run. But the real upside comes from TripAdvisor’s commitment to two of its fastest-growing aggregator properties: Viator and The Fork. Both platforms are dominant in their respective fields and are gaining new customers aggressively. Viator’s experience offering is unmatched in the world, and is currently processing double the volume of transactions it did before Covid. With more than 80% of travel experiences still booked offline, Viator looks more attractive to us than booking.com did a few decades ago.
7. Travel + Leisure Company (NYSE:T.N.L)
Number of Hedge Fund Holders: 35
PE ratio from January 27: 9.60
Travel + Leisure Co. (NYSE:TNL) ranks 7th on the list of most undervalued travel stocks to buy according to hedge funds. Travel + Leisure Co. (NYSE:TNL) sells vacation properties through a shared ownership model. Of the 920 hedge funds tracked by Insider Monkey as of the end of the third quarter, 35 hedge funds owned Travel + Leisure Co. (NYSE:TNL) shares. The total value of these shares was $423 million. Travel + Leisure Co. (NYSE:TNL) is a dividend paying company. Travel + Leisure Company (NYSE:TNL)’s dividend yield on January 27 was 3.82%. In November, Travel + Leisure Co. Quarterly dividend. The dividend was paid on 30 December.
6. Boyd Gaming Corporation (NYSE:Baidi)
Number of Hedge Fund Holders: 36
PE ratio from January 27: 11.77
Boyd Gaming Corp. (NYSE:BYD) operates hotels and casinos and is among the largest users of travel around the world. Earlier this month, investment firm Credit Suisse started covering Boyd Gaming Corporation (NYSE:BYD) on an active level. Credit Suisse analyst Benjamin Chaiken praised Boyd Gaming Corporation’s (NYSE:BYD) growth opportunities in the iGaming industry. The firm quoted Boyd Gaming Corporation (NYSE:BYD)’s 2024 free cash flow estimate at 12.5X to leverage. Credit Suisse has 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, consistent with its past. The dividend for the period was 1.02%. Of the 920 hedge funds tracked by Insider Monkey, 36 hedge funds held shares in Boyd Gaming Corporation (NYSE:BYD).
CClick to continue reading and view. 5 Most Undervalued Travel Stocks to Buy According to Hedge Funds.
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Disclosure: None 12 Undervalued Travel Stocks to Buy According to Hedge Funds Originally published on Insider Monkey.
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