5 Best Consumer Discretionary Stocks To Buy

3. Expedia Group, Inc. (NASDAQ:EXPE) 

Number of Hedge Fund Holders: 65

Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel company in the United States and internationally. The company operates through Retail, B2B, and trivago segments. It is one of the best consumer discretionary stocks to invest in. On February 10, Oppenheimer analyst Jed Kelly raised the firm’s price target on Expedia Group, Inc. (NASDAQ:EXPE) to $135 from $120 and kept an Outperform rating on the shares. Despite the fact that Q4 revenue and EBITDA fell short of consensus estimates, this does not reflect the current demand environment, where lodging bookings in January grew by 20% compared to 2019, compared to only 4% in Q4. The analyst noted that the firm believes the market is undervaluing Expedia Group, Inc. (NASDAQ:EXPE)’s unified tech-stack, which is leading to more consistent earnings growth.

According to Insider Monkey’s fourth quarter database, 65 hedge funds were bullish on Expedia Group, Inc. (NASDAQ:EXPE), compared to 76 funds in the prior quarter. PAR Capital Management is the largest stakeholder of the company, with 3.50 million shares worth $306.60 million. 

Here is what Miller Value Partners specifically said about Expedia Group, Inc. (NASDAQ:EXPE) in its Q3 2022 investor letter:

“Expedia Group, Inc. (NASDAQ:EXPE) ($92.69) has a high teens free cash flow yield, trades at 14x 2022 and 10x 2023 earnings. We believe it can sustain earnings per share growth in the mid-teens. It massively improved its business and margins during the pandemic, has repaired its balance sheet and is chaired by an amazing capital allocator, Barry Diller. We think it’s worth more than double the current price.”