In this article, we will look at the 10 Cheap Travel Stocks to Buy According to Analysts.
As global tourism continues to evolve, the U.S. travel market is navigating challenges that come with potential opportunities. The U.S. travel spending was hit by a $1.9 billion blow due to a sharp 19% drop in Canadian visitors during the first half of 2025, decreasing overall international visits by 3.4%. Canadian arrivals decreased by over 26% in June alone. However, at the same time, Mexican visits increased by 14.8% in June, injecting around $500 million into the sector.
If we dig deeper, we see that border policies, visa fee hikes, and concerns over tariffs and safety have turned potential travelers hesitant. According to a CNBC survey, 80% of Southeast Asian respondents hold the view that the U.S. is losing its appeal. Yet, the travel demand remains, particularly from markets with strong diaspora ties, such as Vietnam and the Philippines.
Against this backdrop and with earnings releases of major travel companies coming up, let’s move ahead to shed light on the 10 Cheap Travel Stocks to Buy According to Analysts.
Photo by sabina fratila on Unsplash
Methodology
To curate our list of the 10 Cheap Travel Stocks to Buy According to Analysts, we used Finviz screener to extract travel and leisure stocks trading under a 20x forward price-to-earnings ratio. We then assessed analyst sentiment over the shortlisted stocks and ranked the stocks based on the upside potential that those analysts predicted. Our list of the 10 Cheap Travel Stocks to Buy According to Analysts is ranked based on the average price target predicted. We also considered hedge fund interest in the respective stocks.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Expedia Group, Inc. (NASDAQ:EXPE)
Forward Price-to-Earnings: 12.77
Upside Potential: 2.76%
Number of Hedge Funds: 54
Expedia Group, Inc. (NASDAQ:EXPE), considered a cheaply priced stock and a top pick among analysts, is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
With its entry into AI-driven, social-first travel planning, Expedia Group, Inc. (NASDAQ:EXPE) is gaining popularity not only among users but also investors.
Trip Matching, which Expedia Group, Inc. (NASDAQ:EXPE) launched on June 12, 2025, is an innovative feature that allows U.S. travelers to turn Instagram reels into bookable itineraries. The users, upon sharing a reel with Expedia, receive the platform’s AI-generated replies with customized ideas, recommendations, and travel tips, which are all ready to book. This feature is promising for the company’s growth, driven by the fact that 80% of millennials use social media for trip inspiration.
Weeks later, Morgan Stanley increased its price target on Expedia Group, Inc. (NASDAQ:EXPE) from $150 to $165 on July 21, 2025. Maintaining an ‘Equal Weight’ rating, the analyst cited a positive macro environment and eased China tariffs.
With brands like Brand Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, and CarRentals.com, Expedia Group, Inc. (NASDAQ:EXPE) operates as a global online travel company. It is included in our list of cheap travel stocks.
9. Travel + Leisure Co. (NYSE:TNL)
Forward Price-to-Earnings: 10.03
Upside Potential: 5.25%
Number of Hedge Funds: 30
Travel + Leisure Co. (NYSE:TNL) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
On July 23, 2025, Travel + Leisure Co. (NYSE:TNL) reported second-quarter results. The company reported adjusted EPS of $1.65, missing the $1.66 per share estimate. However, the company demonstrated strong resilience with revenue growth of 3% and adjusted EBITDA of $250 million, aligning with the guidance. Vacation Ownership (VO) segment, its largest revenue contributor, reported 6% revenue growth and Volume Per Guest (VPG) of $3,251.
Looking ahead, Travel + Leisure Co. (NYSE:TNL) confirmed its full-year EBITDA guidance of $955-$985 million and raised VPG guidance to $3,200-$3,250. The company’s $20 billion long-term revenue pipeline, along with its growing traction among the youth segment, is expected to drive the company’s momentum upward. Furthermore, its expanded Margaritaville presence and an exclusive Sports Illustrated Resort in Nashville, scheduled for 2027, further improve the growth prospects.
Meanwhile, the Wall Street response to the earnings was mixed. On July 24, 2025, Mizuho upgraded Travel + Leisure Co. (NYSE:TNL) to ‘Outperform’ with a $72 price target. The analyst cited growth potential from Sports Illustrated Resort. However, Barclays, on the same day, maintained an ‘Underweight’ rating, which was attributed to weak Exchange performance. Yet, the analyst increased its price target to $54.
Travel + Leisure Co. (NYSE:TNL), headquartered in Orlando, Florida, offers vacation ownership, travel membership, and booking technology across the globe. It is included in our list of cheap travel stocks.
8. Carnival Corporation & plc (NYSE:CCL)
Forward Price-to-Earnings: 15.59
Upside Potential: 7.63%
Number of Hedge Funds: 55
Carnival Corporation & plc (NYSE:CCL), considered a cheaply priced stock and a top pick among analysts, is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
As the travel industry’s momentum is on an upward trajectory, Carnival Corporation & plc (NYSE:CCL) is attracting the attention of Wall Street.
On July 22, 2025, citing the company’s disciplined capacity growth, TD Cowen gave Carnival Corporation & plc (NYSE:CCL) a ‘Buy’ rating with a $36 price target. Instead of scaling up, the company is focusing on yield optimization with the help of its proprietary YODA system. The system resulted in an industry-leading 7% yield growth in the first half of 2025 with a strong gross margin of 54.7%. The analyst expects a five-year CAGR of 19% in net income and 21% in EPS due to this focus on margins and declining interest expenses.
Furthermore, on July 23, 2025, BofA increased its price target on Carnival Corporation & plc (NYSE:CCL) from $31 to $38. The analyst, too, cited the growing momentum of cruise equities, along with strong earnings expectations.
Carnival Corporation & plc (NYSE:CCL), a leisure travel company, offers cruise vacations with brands like Carnival Cruise Line, Princess Cruises, and Holland America Line. It is included in our list of cheap travel stocks.
7. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Forward Price-to-Earnings: 11.47
Upside Potential: 11.13%
Number of Hedge Funds: 47
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
With cruise stocks gaining momentum, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is drawing analyst attention as they reassess the sector’s long-term potential and short-term momentum.
On July 22, 2025, TD Cowen gave a ‘Buy’ rating on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) with a $31 price target. Within the travel sector, the analyst considered NCLH an underappreciated gainer. With a 7% annual industry revenue growth projected through 2029, the analyst believes the company, trading at an airline-level valuation multiple, holds upside potential.
Meanwhile, on July 23, 2025, BofA increased its price target on Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) from $20 to $27, maintaining a ‘Neutral’ rating. The analyst cited the cruise sector’s 72% gain since the market bottom in April and thus, expects strong earnings.
With its Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas brands, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) offers luxury travel experiences across all major global destinations. It is included in our list of cheap travel stocks.
6. Wyndham Hotels & Resorts, Inc. (NYSE:WH)
Forward Price-to-Earnings: 18.83
Upside Potential: 13.51%
Number of Hedge Funds: 49
Wyndham Hotels & Resorts, Inc. (NYSE:WH), considered a cheaply priced stock and a top pick among analysts, is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
On July 23, 2025, Wyndham Hotels & Resorts, Inc. (NYSE:WH) reported Q2 results, demonstrating the company’s resilient strength backed by smart innovation, solid developments, and strong franchisee sentiment.
Wyndham Hotels & Resorts, Inc. (NYSE:WH) launched over 16,000 rooms in Q2, taking its YTD additions to 30,000 rooms. This marks a 3% increase from last year, making it the strongest half on record. Furthermore, development signings increased by 40% YoY, growing the global pipeline to a record 255,000 rooms. This quarter is the company’s 20th straight quarter of pipeline growth. Net rooms grew 4% with growth of 16%, 13%, 5%, and 4% growth noted in China, Southeast Asia, EMEA, and Latin America markets, respectively.
Moreover, Wyndham Hotels & Resorts, Inc. (NYSE:WH) launched strategic tools like Wyndham Connect PLUS, an insurance program through HUB International, Grubhub and Applebee’s F&B integrations, and Wyndham Rewards Experiences. Meanwhile, its revenue increased by 13% on a YTD basis and EPS rose 11% YoY to $1.33, while adjusted EBITDA climbed 5%. However, softness in U.S. Sunbelt leisure markets led to a 3% decline in the company’s RevPAR. Looking ahead, the company expects EPS of $4.60-$4.78 and RevPAR ranging from -2% to +1% for the full year.
On the analyst front, on July 15, 2025, Barclays and Truist both increased their price target on WH to $101 due to its resilient all-franchise model and capital gains. Previously, JPMorgan, assigning a $101 target, called Wyndham Hotels & Resorts, Inc. (NYSE:WH) “one of the best values in lodging.”
Wyndham Hotels & Resorts, Inc. (NYSE:WH), a global hospitality company, operates over 5,000 properties across the globe, operating a full franchised model across economy and midscale segments. It is included in our list of cheap travel stocks.
5. United Airlines Holdings, Inc. (NASDAQ:UAL)
Forward Price-to-Earnings: 8.58
Upside Potential: 13.51%
Number of Hedge Funds: 67
United Airlines Holdings, Inc. (NASDAQ:UAL) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
On July 18, 2025, United Airlines Holdings, Inc. (NASDAQ:UAL) announced that it is planning to extend its Special Olympics Service Ambassador (SOSA) program with the hiring of 28 ambassadors at all seven U.S. hubs. Under the program, part-time employment with full benefits is offered to individuals with intellectual and physical disabilities. Jerry Rice, NFL legend, joined the announcement and trained alongside existing SOSAs.
This expansion comes ahead of the company’s strong Q2. During the quarter, United Airlines Holdings, Inc. (NASDAQ:UAL) launched Blue Sky with Jet Blue. Under this new alliance, booking and loyalty programs are integrated. The company operated its largest-ever flight schedule. Furthermore, UAL expanded its international footprint, adding services to eight new destinations, along with plans to expand to Bangkok, Ho Chi Minh City, and Adelaide.
Meanwhile, following the company’s earnings release, UBS maintained its ‘Buy’ rating with $103 price target. The analyst also updated UAL guidance to $9-$11.
Operating across the United States, Canada, the Atlantic, the Pacific, and Latin America, United Airlines Holdings, Inc. (NASDAQ:UAL) offers air transportation services. It is included in our list of cheap travel stocks.
4. Delta Air Lines, Inc. (NYSE:DAL)
Forward Price-to-Earnings: 9.48
Upside Potential: 17.10%
Number of Hedge Funds: 67
Delta Air Lines, Inc. (NYSE:DAL), considered a cheaply priced stock and a top pick among analysts, is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
With strong free cash flow, margin discipline, and forward-thinking investments, Delta Air Lines, Inc. (NYSE:DAL) remains optimistic about its future growth outlook.
In its earnings call, published on July 11, 2025, Delta Air Lines, Inc. (NYSE:DAL) maintained its full-year 2025 EPS guidance of $5.25 to $6.25, expecting $3 to $4 billion in free cash flow. This supports the company’s plan to reduce its debt by $3 billion and increase its dividend by 25%.
Meanwhile, the company’s diversified, high-margin revenue segments now account for 66% of total revenue. This includes record co-branded card revenue from American Express, which is up 10% YoY.
Furthermore, Delta Air Lines, Inc. (NYSE:DAL) eyes future growth with heavy investments in global expansion (e.g., WestJet and IndiGo partnerships), premium cabin growth, AI-powered revenue tools like Fetcherr, and customer experience enhancements such as Delta Concierge. With these growth strategies, Delta aims to broaden its margins and capitalize on evolving travel patterns.
With its Airline and Refinery segments, Delta Air Lines, Inc. (NYSE:DAL) offers scheduled air transportation service for passengers and cargo. It is included in our list of cheap travel stocks.
3. American Airlines Group Inc. (NASDAQ:AAL)
Forward Price-to-Earnings: 15.48
Upside Potential: 18.43%
Number of Hedge Funds: 43
American Airlines Group Inc. (NASDAQ:AAL) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
On July 24, 2025, American Airlines Group Inc. (NASDAQ:AAL) reported Q2 2025 earnings. The stronger-than-expected earnings were marked by adjusted EPS of $0.95, exceeding the consensus estimate of $0.79. Furthermore, resilient premium demand and strong international performance, particularly in transatlantic routes, helped the company post revenue of $14.4 billion. However, domestic unit revenue dropped 6% YoY due to softness in domestic leisure.
Meanwhile, American Airlines Group Inc. (NASDAQ:AAL) maintained an operating margin of 8% and generated $791 million in free cash flow during the quarter. The company’s financial health further improved with debt repayments, taking its net debt to $29 billion, the lowest since 2015.
For Q3, American Airlines Group Inc. (NASDAQ:AAL) has projected EPS to range between a $0.10 and $0.60 loss. The company does consider July as the trough, but anticipates sequential improvement in revenue. For the full year, it expects its EPS to range from a $0.20 loss to a $0.80 profit.
Looking beyond 2025, American Airlines Group Inc. (NASDAQ:AAL) expects a full recovery of indirect channel share by the end of this year which would boost 2026 revenue.
On the analyst front, BofA, on July 25, 2025, increased its price target on American Airlines Group Inc. (NASDAQ:AAL) from $12 to $13, maintaining a ‘Neutral’ rating. The analyst cited Q3 guidance that fell below expectations.
American Airlines Group Inc. (NASDAQ:AAL), a network air carrier, provides scheduled air transportation services for passengers and cargo. It is included in our list of cheap travel stocks.
2. Trip.com Group Limited (NASDAQ:TCOM)
Forward Price-to-Earnings: 18.12
Upside Potential: 18.47%
Number of Hedge Funds: 46
Trip.com Group Limited (NASDAQ:TCOM), considered a cheaply priced stock and a top pick among analysts, is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
Trip.com Group Limited (NASDAQ:TCOM) recently released its findings on Southeast Asia tourism. According to the findings, the company reported a spike in bookings to Singapore for July and August. This sharp increase is attributed to the international interest in two major sporting events: the World Aquatics Championships 2025 and the Singapore Festival of Football 2025. The bookings increased in the two months by 31% and 50%, respectively, compared to last year.
Amid this growing momentum, on July 9, 2025, Trip.com Group Limited (NASDAQ:TCOM) signed two MOUs with Resorts World Genting (RWG), Malaysia’s premier integrated resort. With the API integration between Trip.com and RWG’s hotel and theme park systems, this collaboration aims to enable real-time booking, rate parity, and exclusive offers for users. This move supports TCOM’s mission to expand its position as a key tourism enabler in Asian markets.
Trip.com Group Limited (NASDAQ:TCOM), a global travel service provider, offers end-to-end solutions across transportation, accommodations, tours, and corporate travel segments. It is included in our list of cheap travel stocks.
1. Alaska Air Group, Inc. (NYSE:ALK)
Forward Price-to-Earnings: 14.97
Upside Potential: 21.99%
Number of Hedge Funds: 56
Alaska Air Group, Inc. (NYSE:ALK) is included in our list of the 10 Cheap Travel Stocks to Buy According to Analysts.
On July 23, 2025, Alaska Air Group, Inc. (NYSE:ALK) released its Q2 2025 results. The company reported adjusted EPS of $1.78, which exceeded guidance. Strong premium class performance and a profitable quarter from its Hawaiian assets helped the company earn revenue of $3.7 billion. The adjusted net income for the quarter reached $215 million.
Ahead of the earnings release, UBS maintained its ‘Neutral’ rating and $49 price target, citing the growing optimism regarding the airline industry. Validating the analyst’s optimism, Alaska Air Group, Inc. (NYSE:ALK)’s premium revenue grew 5% YoY, driving 35% of its total sales.
Looking ahead, Alaska Air Group, Inc. (NYSE:ALK) expects FY25 EPS of at least $3.25. This is attributed to the Alaska Accelerate initiative and continued synergy realization. Furthermore, its new loyalty program, premium credit card launch, expansion of international long-haul network from Seattle, and a 17-aircraft 787 fleet in the pipeline are cited as other key growth drivers.
While a softer macro demand was noted during the quarter, Alaska Air Group, Inc. (NYSE:ALK) expressed growing confidence due to recent booking upticks and capacity discipline, reaffirming its target of $10 EPS by 2027 and $1 billion in expected incremental profit.
With its Alaska Airlines, Hawaiian Airlines, and Regional segments, Alaska Air Group, Inc. (NYSE:ALK) offers air transportation services. It is included in our list of cheap travel stocks.
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