calls of the day. We start today with Regeneron. Top pick for 2026.800 bucks is the price target at Wolf. Jenny, you own the stock. >> We sure do.We've owned it for a long time. And it's interesting that this is their top pick because it really like follows on what Joe was saying about what's outperforming today. It follows on what Liz was saying about what about value doing well into 2026.So here you've got a company that trades at 16 1.5% times earnings, has a 5% free cash flow yield. They've got 20% earn ...

Core Insights - The current economic environment shows rising unemployment and inflation, with over 150,000 layoffs in October, leading to a decline in consumer sentiment to its lowest since 2022 [1] - Despite these challenges, travel demand remains strong, particularly among affluent consumers, which is expected to benefit companies in the travel sector [2][4] Company Performance - Delta Air Lines has been added to the "Best Stocks in the Market" list by Ritholtz Wealth Management, highlighting its operational performance and focus on premium experiences [3][6] - In Q3, Delta's high-margin segments, including premium and loyalty services, accounted for 60% of its total revenue, indicating resilience among affluent customers [4] - Expedia has also been recognized for its strong performance, with an 11% increase in room bookings in Q3, attributed to significant growth in the U.S. market [5][6] Market Trends - The travel sector, including airlines and cruise lines, has reported resilient results despite economic fears, suggesting that consumer travel spending is not slowing down [3][6] - Companies like Delta and Expedia demonstrate that high service quality and pricing power can lead to positive returns even in challenging economic conditions [5][6]

Core Insights - Investors are showing a bullish stance on Booking Holdings (NASDAQ:BKNG), with significant options trading activity indicating potential market movements [1][2] - The overall sentiment among large traders is mixed, with 45% bullish and 36% bearish positions noted [3] Options Trading Activity - A total of 11 uncommon options trades were identified for Booking Holdings, with 7 puts totaling $352,130 and 4 calls totaling $192,590 [2][3] - The targeted price range for Booking Holdings over the last three months is between $5000.0 and $5350.0, based on volume and open interest analysis [4] Volume and Open Interest Analysis - The analysis of volume and open interest provides insights into liquidity and investor interest in Booking Holdings' options, particularly within the strike price range of $5000.0 to $5350.0 over the past 30 days [5] Analyst Ratings and Price Targets - Professional analysts have set an average price target of $6083.33 for Booking Holdings, with recent ratings reflecting a mix of upgrades and downgrades [11][12] - Notable analyst actions include a downgrade to Buy with a new price target of $6250 from BTIG, and upgrades to Buy with a price target of $6000 from B of A Securities and to Outperform with a price target of $6000 from Wedbush [12] Company Overview - Booking Holdings is the largest online travel agency globally, providing a wide range of booking and payment services across various travel-related sectors [10]

Core Insights - Allegiant has partnered with Rocket Travel by Agoda to launch a new hotel booking platform, Allegiant Hotels, allowing over 20 million Allways Rewards members to earn and redeem points on hotel stays worldwide [1][2][4]. Group 1: Partnership and Platform Features - The collaboration expands the Allways Rewards program, enabling customers to earn and redeem points on hotel bookings globally, including popular destinations like Orlando, Tampa, and Nashville [2]. - The Allegiant Hotels platform, powered by Rocket Travel by Agoda, offers a seamless hotel booking experience, allowing customers to search, book, and manage stays while earning or redeeming points [4]. - Rocket Travel by Agoda will manage hotel inventory and customer service, ensuring a high-quality experience that aligns with Allegiant's standards [4]. Group 2: Customer Engagement and Promotions - Allegiant plans to actively promote the new platform to Allways Rewards members, including exclusive offers for co-branded credit cardholders and special launch promotions [5]. - The partnership emphasizes a commitment to enhancing the travel experience and rewarding customer loyalty throughout the journey [6].

Core Viewpoint - The article discusses the market outlook for 2026, emphasizing a potential for lower interest rates due to a softer labor market, which could positively impact stock market performance [2][3][4]. Market Outlook - Michael Kantrowitz, Chief Investment Strategist at Piper Sandler, believes the stock market is set for a strong performance heading into 2026, with a focus on historical context to understand current market dynamics [2]. - The current labor market conditions are seen as a new concern, but they may lead to lower interest rates, which historically correlate with improved stock market performance [3]. Interest Rates and Market Dynamics - Higher interest rates have been a barrier to market broadening, but a shift to lower rates could benefit underperforming sectors such as manufacturing, transportation, and housing in 2026 [4]. Investment Opportunities - The article lists 12 cheap NASDAQ stocks to consider for investment, identified through a methodology that includes screening for stocks with a forward price-to-earnings ratio below 15 and cross-referencing hedge fund interest [7][8]. Company Highlights - **Sanofi (NASDAQ:SNY)**: - Forward P/E Ratio: 10.7, with 32 hedge fund holders. Recently completed the acquisition of Vicebio, enhancing its vaccine development capabilities [9][10][11]. - Received EU approval for Dupilumab, a treatment for chronic spontaneous urticaria, expanding its market potential significantly [12][13]. - **Trip.com Group Limited (NASDAQ:TCOM)**: - Forward P/E Ratio: 11.01, with 37 hedge fund holders. Reported a 17.64% year-over-year revenue growth to $2.58 billion in fiscal Q3 2025, exceeding estimates [14][16]. - Strong performance driven by cross-border travel, with international bookings increasing by 60% year-over-year and inbound travel bookings more than doubling [16][17].

Core Insights - Deep-pocketed investors are showing a bullish sentiment towards Booking Holdings, indicating potential significant developments ahead [1] - The options activity for Booking Holdings is unusually high, with 45% of investors leaning bullish and 12% bearish [2] Options Activity - A total of 31 extraordinary options activities were recorded for Booking Holdings, with 20 puts totaling $2,371,481 and 11 calls amounting to $599,375 [2] - Major market movers are focusing on a price range between $4000.0 and $7300.0 for Booking Holdings over the past three months [3] Volume & Open Interest Trends - Insights into volume and open interest are crucial for understanding liquidity and interest levels in Booking Holdings' options [4] - A snapshot of trends in volume and open interest for calls and puts within the strike price range of $4000.0 to $7300.0 has been provided [4][5] Current Market Position - The average target price for Booking Holdings proposed by five industry analysts is $5966.0 [13] - Analysts from various firms have differing ratings and target prices, with Cantor Fitzgerald maintaining a Neutral rating at $5550, BTIG downgrading to Buy at $6250, Keybanc rating it Overweight at $6630, and Truist Securities maintaining a Buy rating at $5810 [14] Trading Performance - The current trading volume for Booking Holdings stands at 30,036, with the stock price at $4655.77, reflecting a decrease of -0.75% [16] - The stock is currently neutral according to RSI indicators, positioned between overbought and oversold [16]

Group 1 - Benchmark raised the price target on Trip.com (TCOM) to $82 from $80, maintaining a Buy rating following better-than-expected Q3 results [1] - The firm believes Trip.com is well-positioned for scalable and sustainable growth [1] - FY25 and FY26 estimates were "moderately" raised after the report [1]

Summary of Trip.com Group (TCOM) Conference Call Company Overview - **Company**: Trip.com Group (TCOM) - **Market Cap**: $46.0 billion - **Enterprise Value**: $39.8 billion - **12-Month Price Target**: $91.00 (current price: $72.44, upside: 25.6%) [1][5][25] Key Financial Results - **3Q25 Revenue Growth**: +16% YoY to Rmb6.1 billion, slightly above estimates [1][19] - **EBIT Growth**: +12% YoY, with EBIT margin at 33.4%, slightly above guidance [1][32] - **Net Profit**: Rmb19.2 billion, significantly up from Rmb6 billion in 3Q24 due to a one-off disposal gain [1][23] - **Revenue Contribution**: Domestic business at 65%, outbound travel at 15%, and Skyscanner at 7% [1][19] Segment Performance - **Accommodation Revenue**: Grew +18% YoY, driven by a +70% increase in international bookings [1][19][26] - **Transportation Ticketing**: Revenue growth accelerated to +12% YoY, with air ticket volume growth over +60% [1][27] - **Corporate Travel**: Revenue growth accelerated to +15% YoY, driven by an expanding customer base [1][28] - **Packaged Tours**: Remained soft at +3% YoY, below guidance due to demand for personalized travel experiences [1][19] Market Trends and Outlook - **Travel Demand**: Management remains optimistic about leisure travel demand, especially during the Golden Week holidays [1][20] - **Competitive Landscape**: Despite increased competition from Agoda and Booking.com, TCOM believes the market remains fragmented, providing growth opportunities [1][20] - **Guidance for 4Q25**: Revenue growth expected at +15-20% YoY, with accommodation and transportation ticketing segments projected to grow at +17-22% and +10-15% respectively [1][22][31] Cost Management and Margins - **Cost Control**: Personnel-related expenses grew +9% YoY, below revenue growth, contributing to margin stability [1][32] - **Sales & Marketing Expenses**: Expected to increase to ~27% of revenue in 4Q25 due to heightened marketing efforts [1][32] Shareholder Returns and Cash Position - **Share Repurchase**: Completed a $400 million annual share repurchase program [1][35] - **Cash Position**: Cash and equivalents totaled Rmb107.7 billion (approximately $15.2 billion) as of September 2025 [1][36] Additional Insights - **User Growth**: Monthly active users (MAU) grew over 70% YoY in October [1][20] - **Experience Market**: Currently generates ~Rmb5 billion GMV, seen as a complement to other booking services rather than a primary focus [1][21] - **Long-term Strategy**: TCOM aims to balance revenue growth with margin management, particularly for the Trip.com platform [1][23][25] This summary encapsulates the key points from the conference call, highlighting the financial performance, market trends, and strategic outlook for Trip.com Group.

Group 1 - Trip.com (NASDAQ: TCOM) experienced a rise in trading in Hong Kong and pre-market trading in the United States following strong quarterly results [1] - There were initial bearish concerns regarding earnings potentially falling short before the quarterly release [1] - The article emphasizes the importance of observing megatrends and technological advancements for investment insights, while also highlighting the necessity of focusing on fundamentals and company details [1] Group 2 - The author has a beneficial long position in TCOM shares through various means, indicating a personal investment interest [2] - The article expresses the author's own opinions and does not involve compensation from any company mentioned [2]

Financial Data and Key Metrics Changes - Trip.com Group reported a net revenue of RMB 18.3 billion for Q3 2025, representing a 16% increase year-over-year and a 24% increase quarter-over-quarter [18] - Adjusted EBITDA for Q3 was RMB 6.3 billion, compared to RMB 5.7 billion in the same period last year and RMB 4.9 billion in the previous quarter [20] - Diluted earnings per ordinary share were RMB 28.61 or $4.02, elevated due to a one-time gain from the divestment of an overseas investment [21] Business Line Data and Key Metrics Changes - Accommodation reservation revenue increased by 18% year-over-year to RMB 8.0 billion, driven by strong outbound and international hotel bookings [18] - Transportation ticketing revenue rose by 12% year-over-year to RMB 6.3 billion, with international air bookings showing robust growth [18] - Package tour revenue grew by 3% year-over-year to RMB 1.6 billion, primarily due to the expansion of international offerings [19] Market Data and Key Metrics Changes - Outbound hotel and air bookings grew by close to 20% year-over-year, reaching about 140% of 2019 volumes [8] - Inbound travel bookings on the platform grew by over 100% year-over-year, reflecting robust international demand [10] - The Asia-Pacific region remains the largest source of inbound travelers, with international bookings growing around 60% year-over-year [11] Company Strategy and Development Direction - The company aims to leverage AI innovation to enhance travel experiences and improve service delivery [6][17] - Trip.com Group is focusing on expanding its international presence, particularly in the Asia-Pacific region, while also enhancing domestic services [40] - The company is committed to nurturing the broader travel ecosystem and supporting local economic development through strategic partnerships [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of travel, citing strong demand and a growing desire for immersive experiences [5][6] - The company plans to continue investing in AI and technology to enhance customer service and operational efficiency [26] - Management noted that challenges in the market present opportunities for strengthening the company's foundation and expanding its market share [40] Other Important Information - The company launched a free layover experience for travelers at Hong Kong International Airport, enhancing its offerings for international visitors [11] - The number of Old Friends Club members and their total GMV rose over 70%, indicating a growing focus on senior travelers [12] Q&A Session Summary Question: Insights on AI's role in Trip.com's strategy - Management highlighted AI as a central pillar of their strategy, with significant growth in the use of AI-driven tools like Trip Genie, which is now used in over 200 countries [24][25] Question: Consumer behavior trends during national holidays - Management noted strong trends for long stays and long-distance travel during the national holiday, with outbound bookings increasing over 30% year-over-year [30] Question: Recent trends in hotel and air ticket prices - Management indicated that hotel and air ticket prices have shown a slight decline, with domestic prices trending higher during peak travel periods [34] Question: Insights on international performance and regional highlights - Management reported a 60% year-over-year increase in international bookings, with Asia-Pacific being the largest contributor [50] Question: Updates on inbound travel business - Management shared positive feedback from inbound customers regarding safety and hospitality, highlighting the growth potential in this segment [54] Question: Marketing strategy and future plans - Management discussed the effectiveness of their marketing strategy in Q3 and plans to continue executing signature campaigns for upcoming global holidays [60] Question: Impact of competition and market dynamics - Management emphasized the favorable environment for online travel companies in the Asia-Pacific region, focusing on delivering one-stop solutions and exceptional customer service [63]