Core Insights - The Zacks Style Scores are complementary indicators that help investors select stocks with the best chances of outperforming the market over the next 30 days [2] - Stocks are rated based on value, growth, and momentum characteristics, with scores ranging from A to F, where A indicates the highest potential for outperformance [3] Value Score - The Value Style Score identifies attractive and discounted stocks using ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - The Growth Style Score focuses on a company's financial strength and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] Momentum Score - The Momentum Style Score helps investors capitalize on price trends by evaluating one-week price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines all three Style Scores, serving as an important indicator alongside the Zacks Rank to identify stocks with attractive value, growth forecasts, and promising momentum [6] Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.62% since 1988, significantly outperforming the S&P 500 [7][8] Stock to Watch: Expedia Group, Inc. - Expedia is a leading online travel company with a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating solid performance potential [11] - The company has a Value Style Score of A, supported by a forward P/E ratio of 12.57, making it attractive to value investors [12] - For fiscal 2025, the Zacks Consensus Estimate for Expedia's earnings has increased by $0.04 to $14.61 per share, with an average earnings surprise of +5.5% [12]

Company Overview - Tripadvisor is an online travel company operating through three segments: Brand Tripadvisor, Viator, and TheFork, connecting travelers with partners through content and marketplaces for various travel categories [1] - Tripadvisor.com is the largest travel guidance platform globally, with 300 million monthly unique visitors, over a billion reviews, and $900 million in revenue [4] - Viator is a rapidly growing booking platform for tours, expected to generate over $900 million in revenue this year [4] - TheFork is the largest online restaurant reservation marketplace in Europe, projected to generate over $200 million in revenue this year [4] Valuation and Market Position - Tripadvisor trades at a significant discount, around seven times EBITDA, compared to low to mid-teens for peers and higher historical multiples for itself [4] - The decline in Tripadvisor's core business revenue by 7.95% from 2023 to 2024 is a contributing factor to its current valuation [5] - Despite the decline, Viator and TheFork are growing, with Viator matching Tripadvisor's revenue and TheFork achieving high single-digit growth [5] Activist Involvement - Starboard Value has acquired a 9.01% stake in Tripadvisor and plans to engage with management regarding value creation opportunities [2][3][6] - Starboard's investment strategy may include maintaining the status quo if revenue growth resumes, focusing on operational efficiency, or exploring strategic sales of segments like TheFork [7] - TheFork could be valued at approximately $1 billion based on a five-times revenue multiple, representing about 40% of Tripadvisor's total enterprise value [7] Governance and Shareholder Sentiment - Tripadvisor's governance issues, including controlled ownership and weak shareholder protections, have historically impacted its valuation [5] - Recent shareholder discontent was evident at the annual meeting, with three directors receiving significant withhold votes, although a proxy fight is not anticipated [9] - Starboard's engagement may lead to improved board representation and a partnership approach rather than a confrontational stance [9]

Core Insights - Ctrip Group has released its 2024 Sustainable Development Report, highlighting its commitment to carbon neutrality by 2050 and significant increases in carbon emissions for 2024 [2][3][5] Group 1: Carbon Emissions and Sustainability Goals - The total greenhouse gas emissions for Ctrip Group in 2024 are reported at approximately 248,978 tons of CO2 equivalent, a dramatic increase from 8,656 tons in 2023, marking a 29-fold rise [3][4] - Ctrip's carbon neutrality plan is based on a 2024 benchmark year, with a focus on improving energy efficiency and transitioning to renewable energy sources [2] - The increase in emissions is attributed to the adoption of new accounting standards and a significant rise in business activities, particularly in cross-border and inbound travel [5] Group 2: Social Responsibility and Community Impact - Ctrip has established 34 "Ctrip Vacation Farms" across the country, creating over 40,000 jobs, with 80% of employees being local villagers, resulting in an average annual income increase of over 40,000 yuan [7] - The initiative has also facilitated nearly 40 million yuan in agricultural sales and integrated intangible cultural heritage elements into farm activities, generating over 3 million yuan in related income [7] Group 3: Travel Safety and Governance - The "Global Travel SOS Platform" by Ctrip has reached 440 million travelers, handling over 22,000 assistance requests with a success rate of 98% [8] - Ctrip has implemented a three-tier sustainable development management structure, with oversight from the board and inclusion of sustainability performance in executive annual performance metrics, achieving an MSCI rating of A and a Wind ESG rating of BBB [10] Group 4: Compliance and Contractual Issues - Ctrip has faced criticism regarding contract fairness, particularly concerning the mandatory activation of the "Price Adjustment Assistant" for hotel partners, which has led to complaints about unauthorized price changes [11][12] - The company’s actions may violate the Price Law of the People's Republic of China and the Promotion of Private Economy Law, raising concerns about compliance and the autonomy of hotel operators [14][15]

Core Insights - Booking Holdings Inc. (BKNG) was identified as a good investment opportunity based on a previous analysis conducted last year [1] - The analyst has extensive experience across various industries including airlines, oil, retail, mining, fintech, and ecommerce, which contributes to a comprehensive understanding of business dynamics [1] - The analyst's background includes navigating multiple crises, providing a robust foundation for evaluating investment opportunities [1] Company Analysis - The comparative analysis with peers revealed insights into the competitive landscape of Booking Holdings Inc. [1] - The company operates in a complex environment influenced by macroeconomic, monetary, and political factors [1] Industry Context - The analyst emphasizes the importance of continuous learning and adaptation in the investment landscape, particularly in relation to new ideas, technology, and business models [1] - The experience gained from various economic crises enhances the ability to assess potential risks and opportunities within the industry [1]

Core Insights - Tripadvisor's stock surged 8% following the announcement of activist investor Starboard Value acquiring a stake exceeding 9% in the company, which led to a further 7% increase in after-hours trading [2][3] - Despite the stock's recent performance, Tripadvisor has faced significant challenges, including a 15% decline in shares over the past year and ongoing strategic considerations since early 2024 [3][9] - Tripadvisor's financial fundamentals reveal concerning metrics, including a price-to-free cash flow (P/FCF) ratio of 61.3, significantly higher than the S&P 500's 20.9, and a price-to-earnings (P/E) ratio of 41.1 compared to the benchmark's 26.9 [4][9] Financial Performance - Revenue growth has stalled, with only a 1.4% increase over the past 12 months and a mere 0.8% year-over-year growth in the most recent quarter, raising concerns about future growth sustainability [5][9] - Tripadvisor's operating margin is at 6.5%, free cash flow margin at 5.8%, and net margin at 2.9%, all significantly below the S&P 500 averages [5][9] Financial Health - The company has $1.3 billion in debt, resulting in a debt-to-equity ratio of 68.9%, which is considerably higher than the S&P 500 average of 19.4% [7] - However, Tripadvisor maintains a strong cash position of $1.2 billion, representing 42% of total assets, providing a safety net against its elevated debt levels [7] Market Resilience - Historically, Tripadvisor has underperformed during market downturns, with a 60.5% decline during the 2022 selloff and a 53.9% drop during the COVID-19 pandemic, indicating limited resilience in volatile conditions [8][9] - The stock currently trades around $15, less than a quarter of its 2021 peak, highlighting ongoing challenges in recovering from past performance [8] Investment Outlook - Tripadvisor's growth momentum is diminishing, profitability remains weak, and the current valuation appears disconnected from its fundamental performance, making it an undesirable investment for long-term investors [9][10]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence in investing [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market within a 30-day timeframe [2] Zacks Style Scores Overview - The Style Scores categorize stocks into four main types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score assesses a company's future growth potential based on earnings and sales [4] - Momentum Score evaluates stocks based on price trends and earnings outlook [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to assist in stock selection [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, achieving an average annual return of +25.41% since 1988 [8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [9] - The direction of earnings estimate revisions is crucial in stock selection, as downward trends can indicate potential price declines [10] Company Spotlight: TripAdvisor (TRIP) - TripAdvisor, Inc. is a leading online travel research company, facilitating user reviews and bookings for hotels and attractions [11] - Currently rated 3 (Hold) with a VGM Score of A, indicating a solid position in the market [11] - TripAdvisor has a Momentum Style Score of B, with shares increasing by 3.8% over the past month [12] - Recent upward revisions in earnings estimates for fiscal 2025 have led to a consensus estimate increase of $0.11 to $1.47 per share, alongside an average earnings surprise of 59.8% [12]

Core Viewpoint - Tripadvisor's stock experienced a 10% increase following Starboard Value's disclosure of a stake exceeding 9% in the company, valued at approximately $160 million as of the previous day's close [1] Company Summary - Starboard Value holds a stake of more than 9% in Tripadvisor, which is valued at around $160 million [1] - Tripadvisor's stock performance has been stagnant since the beginning of the year, having dropped over 30% in 2024 [1] - The company established a special committee last year to explore potential strategic options [1]

Exclusive: Activist investor Starboard Value has built an over 9% stake in Tripadvisor after the online travel-review company eschewed takeover offers in the past year https://t.co/tRegEVcLdK ...

Group 1 - The summer travel peak has officially begun, with Tuniu's booking data indicating that the first wave of travel started on June 28 and is expected to last until mid-August [1] - Domestic long-distance travel and outbound short-distance travel are particularly popular, with family travelers making up 42% of total travelers [1][2] - Popular domestic travel destinations include Shanghai, Beijing, Sanya, Guangzhou, Nanjing, Urumqi, Chengdu, Hangzhou, Zhuhai, and Guilin [1] Group 2 - In outbound travel, popular destinations include the Maldives, Japan, Indonesia, Italy, Switzerland, France, Malaysia, Singapore, the UK, and Germany [1] - Among popular domestic group tours, routes to Northwest, Southwest, North China, and East China are seeing high booking volumes, with specific tours like "Qinghai Lake - Chaka - Dunhuang 8-day tour" and "Nanjing 3-day tour" ranking highly [1] - In outbound group tours, longer itineraries such as "Japan Toyama - Osaka - Tokyo 8-day tour" and "France - Italy - Switzerland 13-day tour" are favored by Tuniu users [1] Group 3 - The popularity of high-speed rail travel is on the rise, with "2-3 hour high-speed rail circles" becoming a favored choice for domestic travelers [2] - Key destinations for high-speed rail travel include Beijing, Shanghai, Nanjing, Suzhou, Hefei, Hangzhou, Qingdao, Guangzhou, Tianjin, and Shijiazhuang [2] - Family travel remains a significant trend, with theme parks like Zhuhai Chimelong Ocean Kingdom and Shanghai Disneyland seeing high booking rates [2]

Group 1: Investment Potential of Growth Stocks - Investing in growth stocks can lead to significant long-run returns, but future performance is uncertain [1] - Diversifying investments across multiple growth stocks can be beneficial, as one successful investment can yield substantial returns [2] Group 2: Nvidia - Nvidia has emerged as a major growth story, particularly due to its role in AI technology, with its chips now critical for AI development [4] - The company generated $77 billion in profit over the last 12 months, a significant increase from previous revenue levels [5] - A $5,000 investment in Nvidia 20 years ago would be worth over $3.1 million today, highlighting its long-term potential [6] Group 3: Netflix - Netflix has consistently evolved its business model, transitioning from DVD rentals to streaming and now live TV and gaming [8] - The company is valued at $40 billion with net margins exceeding 23%, serving as a model for profitability in the streaming industry [9] - A $5,000 investment in Netflix 20 years ago would now be worth about $3 million, indicating its strong growth trajectory [11] Group 4: Booking Holdings - Booking Holdings has been a significant investment opportunity, with a $5,000 investment growing to nearly $1.1 million today [12] - The company leads in online travel services, revolutionizing how consumers book travel through its popular websites [13] - In the last year, Booking Holdings generated $23.7 billion in sales, an 11% increase from the previous year, with a profit of $5.9 billion [14]