In this article, we will look at the 12 Most Undervalued Travel Stocks To Buy According To Hedge Funds.
Stephen Parker, JPMorgan Private Bank co-head of global investment strategy, appeared on CNBC’s ‘Squawk Box’ on February 4 to talk about the latest market trends and outlook for 2026.
He was of the view that what we are seeing in the markets this year, so far, is “very healthy”, saying that a lot of people would have been skeptical about the idea of sitting near all time highs, especially when the tech sector has been the worst performing sector in the S&P and has fallen more than everyone else. This broadening story that we are seeing, according to Parker, is reflective of the anxiety investors have had over the last couple of years. It has been all tech, all the time, and people have been worried about concentration risks.
READ ALSO: 10 Best Confectionery, Cookie and Snack Stocks To Buy and 15 Best Long Term Low Volatility Stocks to Invest In.
However, he stated that now we are seeing a rotation, and it is about the broadening of the recovery story, with cyclicals picking up the slack. It is not just the AI infrastructure players and the hyperscalers that are driving the markets higher; it is actually the AI beneficiaries, according to Parker, and that may cause some disruptions, particularly in sectors like software.
With these broader trends about the market in view, let’s narrow down to the most undervalued travel stocks to buy according to hedge funds.
Our Methodology
We sifted through stock screeners to find the best travel stocks with a forward P/E below 15. We then chose the top 12 with the highest number of hedge fund holders, as of Q3 2025, sourcing the hedge fund sentiment data from Insider Monkey’s database. The list is sorted in ascending order of hedge fund holders.
Note: All data was recorded on February 4.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
12 Most Undervalued Travel Stocks To Buy According To Hedge Funds
12. Choice Hotels International, Inc. (NYSE:CHH)
Number of Hedge Fund Holders: 31
Choice Hotels International, Inc. (NYSE:CHH) is one of the most undervalued travel stocks to buy according to hedge funds. On February 3, JPMorgan lifted the price target on Choice Hotels International, Inc. (NYSE:CHH) to $102 from $95 while maintaining a Neutral rating on the shares. The firm adjusted price targets in the lodging group as part of a fiscal Q4 preview, and told investors in a research note that investor expectations “appear reasonably set” with the U.S. lodging sector exhibiting mixed trends.
The same day, Goldman Sachs also raised the price target on Choice Hotels International, Inc. (NYSE:CHH) to $100 from $90 and reaffirmed a Neutral rating on the shares. The firm continually anticipates an acceleration in U.S. RevPAR growth from 2025, with the World Cup and higher tax refunds/potential stimulus offering some support.
Choice Hotels International, Inc. (NYSE:CHH) also received a rating update from Morgan Stanley on January 16. Morgan Stanley cut the price target on the stock to $91 from $106, keeping an Equal Weight rating on the shares and telling investors that lodging, gaming, and leisure fundamentals were “muted” in 2025. It expects “more of the same fundamentally” in 2026, but with the added wrinkle of rates boosting goods over services.
Choice Hotels International, Inc. (NYSE:CHH) is involved in the franchising and operation of hotels. The company’s operations are divided into the Hotel Franchising, and Corporate and Other segments.
11. Travel + Leisure Co. (NYSE:TNL)
Number of Hedge Fund Holders: 32
Travel + Leisure Co. (NYSE:TNL) is one of the most undervalued travel stocks to buy according to hedge funds. On January 28, Cognizant announced the renewal of a multi-million-dollar strategic collaboration with Travel + Leisure Co. (NYSE:TNL), stating that the extended collaboration would focus on expediting the latter’s digital transformation through a modernization of its technological infrastructure. This would also include the employment of AI to offer improved experiences for its members and owners.
Management reported that the terms of agreement entail that Travel + Leisure Co.’s (NYSE:TNL) technology ecosystem would be optimized by Cognizant by employing its extensive hospitality domain expertise, aimed at improving digital service experiences for its travel club members and 800,000 owner families. Cognizant would support Travel + Leisure Co. (NYSE:TNL) throughout the term of the agreement, assisting with bolstering infrastructure scalability and reliability, modernizing the application landscape, and harnessing data- and AI-driven capabilities.
In another development, Travel + Leisure Co. (NYSE:TNL) announced on January 21 the celebration of the official opening of its new global headquarters in Downtown Orlando, attended by development partners, local leaders, and associates.
Travel + Leisure Co. (NYSE:TNL) offers vacation ownership, managed rental, and exchange services. The company owns exchange properties and vacation resorts, and its comprehensive cruise coverage enables users to get the best deals, the newest ships, and immersive itineraries on the high seas. Its offerings include Alaskan, All-Inclusive, Caribbean, Disney, European, Family, and River cruises.
