Core Viewpoint - The current earnings season is crucial for determining potential financial outcomes for the next two quarters and year-end results, leading to volatility in stock prices as investors adjust their expectations [1] Group 1: Consumer Discretionary Sector - The consumer discretionary sector, particularly travel stocks, has faced market discounting due to inflation and tariff uncertainties, impacting future growth potential reliant on consumer confidence [2] - Companies like Expedia Group, Trip.com Group, and United Airlines are highlighted as key players in the travel sector, benefiting from increased interest in international travel driven by spending patterns and currency fluctuations [3] Group 2: Expedia Group Inc. - Expedia reported earnings per share (EPS) of $4.24, exceeding Wall Street's expectation of $4.13, resulting in a 7.4% stock rally in one week and 14.2% over the month [4] - Analysts project Expedia's EPS to reach $5.43 for Q3 2025, indicating a 28% growth from current figures, suggesting significant future growth potential [5] - The stock's price-to-growth (PEG) ratio is 0.7x, indicating that growth is not fully priced in, with an effective upside potential of 30% [6][7] Group 3: Trip.com Group - Trip.com delivered an EPS of $0.87, surpassing the expected $0.65, leading to a 5% rally in stock price [8] - The consensus rating for Trip.com is a Buy, with a price target of $77.3, suggesting a 25% upside potential from current trading levels [10] - Trip.com has a premium price-to-sales (P/S) ratio of 5.5x, significantly higher than the leisure industry's average of 2.7x, reflecting strong market confidence in its future sales [11] Group 4: United Airlines Holdings Inc. - United Airlines experienced a 12% stock rally in one week, with an EPS of $3.87, above the consensus of $3.81, indicating strong performance [13][14] - The PEG ratio for United Airlines is 0.4x, implying a substantial upside potential of 60% [14] - Institutional investors, such as the Vanguard Group, have increased their holdings in United Airlines, reflecting confidence in the stock's future growth potential [16]