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Is Tripadvisor, Inc. (NASDAQ:TRIP) The Most Undervalued Travel Stocks to Buy According to Hedge Funds

We recently compiled a list of the 12 Most Undervalued Travel Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Tripadvisor, Inc. (NASDAQ:TRIP) stands against the other undervalued travel stocks.

The travel industry has rapidly evolved, with the leading businesses witnessing healthy growth and strong profit margins. The shift in source markets and destinations, increased demand for experiential and luxury travel, together with innovative business strategies continue to dramatically alter the industry landscape. Much of the travel demand is close to home. As per McKinsey, globally, domestic travel should grow ~3% annually, touching 19 billion lodging nights per year by 2030.

This is particularly true for the US, the world’s largest travel market. Around 68% of trips initiated in the US are to destinations within the country. Despite inflation and record costs weighing over Americans’ travel budgets, most of them will continue to travel. Most American consumers rank travel, domestic and international, as their “highest-priority” areas when it comes to discretionary spending.

Rise of Experiential Travel

Travel experts believe that there has been a growing focus on experiences as compared to material goods.

The demand for experiential travel should continue to rise heading into 2025 because consumers are prioritizing unique and memorable encounters over traditional travel consumption. This shift cannot be tagged as a passing trend, but it’s transforming the global tourism landscape. McKinsey believes that the experiential travel market should exceed ~$3 trillion by 2025. The growth should primarily be seen off the back of an increasing share of consumer spending on experiences like entertainment, adventure travel, and personalized excursions.

WNS believes that ~87% of the people globally agree that having a trip booked in the future provides them something to look forward to. With the pent-up demand unleashing, the upcoming 5 years are expected to see elevated expectations among travelers as they plan to make up for the lost time. Despite a bumpy ride for 4 years, the international tourist arrivals should touch pre-pandemic levels in 2024. However, inflationary concerns, climate change, and geopolitical tensions might keep the sector in a difficult spot.

Some countries and governments have done a better job in minimizing such risks and maximizing travel and tourism potential as per the Travel & Tourism Development Index 2024, published last month by the World Economic Forum.

What Are the Trends Shaping for Travel Sector?

As per the United Nations World Tourism Organization (UNWTO), international tourism should fully recover to pre-pandemic levels in 2024. UNWTO expects that there is still a significant headroom for recovery across Asia. Chinese outbound and inbound tourism should ramp up in 2024 as a result of visa facilitation and improved air capacity.

Total international arrivals are expected to significantly increase over the upcoming 2 years and will surpass pre-pandemic 2019 visitation in 2025 (as per the International Trade Administration). Total international arrivals should see an increase of 16.8% to 77.7 million in 2024, 9.7% to 85.2 million in 2025, and an increase of 7.0% to 91.1 million in 2026.

Since the bulk of travel spending remains close to home, McKinsey mentioned that 75% of travel spend is domestic. The US has been tagged as the world’s largest domestic travel market, with China well-placed to overtake it in the coming years. New markets like India, Southeast Asia, and Eastern Europe are the growing sources of outbound tourism. The travel spending of Indians should grow by 9% per year between now and 2030, with annual growth projections for Southeast Asians and Eastern Europeans coming at ~7% for both. Just like the launch of a jet engine significantly reduced travel times, AI continues to change the fundamentals of the travel industry.

As per estimates by McKinsey Digital, companies that holistically address digital and analytics opportunities can experience an earnings improvement of up to ~25%.

Our methodology

To list the 12 Most Undervalued Travel Stocks to Buy According to Hedge Funds, we used a Finviz screener to filter the stocks catering to the relevant industries and also looked into travel ETFs and online rankings. We gathered a list of 20 stocks and then narrowed our list to stocks that were trading at less than the forward earnings multiple of ~22.56x (since the broader market trades at ~22.56x). Finally, we ranked the stocks in ascending order of the number of hedge funds that have stakes in them.

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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).

Tripadvisor, Inc. (NASDAQ:TRIP)

Forward P/E Ratio as of 13 September: 8.82x

Number of Hedge Funds: 37

Tripadvisor, Inc. (NASDAQ:TRIP) operates as an online travel research company. It provides travel information, reviews, and opinions of members regarding destinations and accommodations, which includes hotels, bed and breakfasts, specialty lodging, and other activities.

Market experts believe that Tripadvisor, Inc. (NASDAQ:TRIP) remains well-placed to navigate the evolving landscape of online travel and restaurant reservations. Therefore, the company continues to focus on exploiting increased consumer activity in the post-pandemic era. Moreover, the company has a large, growing, and highly engaged network. This helps in creating a substantial barrier to competition.

Tripadvisor, Inc. (NASDAQ:TRIP) has been successful in building a strong platform for non-hotel reviews that focuses on restaurants and attractions. Therefore, the company creates a significant amount of value for the hotel channel, which it might capture financially. Nearly a decade ago, the company acquired a platform called Viator. The market players are now turning optimistic about Viator. They believe that Viator’s surging adoption provides Tripadvisor, Inc. (NASDAQ:TRIP) an underappreciated growth engine for the long term. The company continues to invest in its brand, product, and repeat bookings to drive LTV and improvements in unit economics.

In 2Q 2024, the company delivered revenue of $497 million and adjusted EBITDA of $97 million, or 20% of revenue. Tripadvisor, Inc. (NASDAQ:TRIP) delivered value via product innovation, and marketing efficiency, together with day-to-day execution. These measures are expected to drive long-term sustainable growth in revenue and profit as it builds a durable position throughout travel and experiences.

Analysts at Wedbush reaffirmed its “Neutral” rating and gave a price target of $21.00 on the shares of Tripadvisor, Inc. (NASDAQ:TRIP) on 7th August. Tripadvisor, Inc. (NASDAQ:TRIP) was a part of 37 hedge fund portfolios at the end of Q2 2024, compared with 36 in the previous quarter, according to Insider Monkey’s database.

Overall TRIP ranks 10th on our list of the most undervalued travel stocks to buy according to hedge funds. While we acknowledge the potential of TRIP as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that’s more promising than the stocks on our list, check out our report about the cheapest AI stock.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. This article was originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
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When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

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This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

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It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

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Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!