Core Viewpoint - The article discusses the identification of 10 undervalued cyclical stocks for investment, emphasizing the potential for growth in the consumer cyclical sector and the importance of hedge fund interest in these stocks [1][5][6]. Market and Economic Outlook - Alan McKnight from Regions Wealth Management indicates that the consumer sector remains strong, with earnings performing well, suggesting a healthy market and economy [2]. - Richard Bernstein highlights that 2026 may present different investment opportunities, recommending dividend-paying stocks and international diversification due to the outperformance of international markets compared to the US market in 2025 [2][3]. Stock Selection Methodology - The list of 10 undervalued cyclical stocks was curated using the Finviz stock screener, Seeking Alpha, and Insider Monkey's Q3 2025 database, focusing on consumer cyclical stocks with a forward P/E ratio under 15 [5]. - Stocks were ranked based on the number of hedge fund holders, as research indicates that mimicking top hedge fund picks can lead to market outperformance [6]. Individual Stock Analysis - **Trip.com Group Limited (NASDAQ:TCOM)** - Forward P/E Ratio: 11.77, with 37 hedge fund holders - The stock has gained over 22% in the past 6 months, with Wall Street projecting a 16% upside [7]. - Recently partnered with Galaxy Asia Car Rental to enhance visibility in Malaysia, a market experiencing triple-digit growth year-over-year [8][9]. - The partnership aims to integrate global planning with local execution, capitalizing on rising regional demand [9][10]. - **PulteGroup, Inc. (NYSE:PHM)** - Forward P/E Ratio: 10.84, with 42 hedge fund holders - Wall Street has mixed opinions, with RBC Capital maintaining a Hold rating and lowering the price target from $112 to $111, while Citizens maintains a Buy rating with a $145 price target [11][12]. - RBC Capital expresses caution regarding the housing sector due to affordability challenges, while Citizens highlights the company's focus on move-up and adult buyers, which may mitigate the impact of mortgage rate volatility [12][13]. - PulteGroup generates approximately two-thirds of its annual sales from these buyer segments, providing a competitive edge [13][14].

Accessible version Internet/e-Commerce Year-Ahead 2026: Top themes and stocks for 1H'26 Industry Overview Dominant theme - AI We expect AI to be the dominant theme again in 2026, and we note Alphabet's 2H'25 stock performance improvement following the Gemini launch and TPU deals as an example of rapidly changing AI sentiment. We think "peak optimism" for AI might not occur until highly visible AI decacorns start going public. Top AI sector themes for 2026 are AI capex returns, Agentic AI adoption, Open Inte ...

Core Insights - Tripadvisor has announced its 2026 Travelers' Choice Awards, highlighting the most loved travel destinations globally, categorized into various themes [1][2][3] Top Destinations - Bali, Indonesia is recognized as the No. 1 Top Destination in the World for 2026, celebrated for its lush landscapes and white sand beaches [4] - Other top global destinations include New York City, London, Dubai, Paris, Rome, and Bangkok, reflecting a strong interest in iconic cities and cultural experiences [5] - In the U.S., New York City retains its position as the top destination, followed by Las Vegas, O'ahu, Nashville, New Orleans, Chicago, and Washington, D.C. [6] Trending Destinations - Madeira, Portugal is named the No. 1 Trending Destination in the World for 2026, known for its natural beauty and family-friendly atmosphere [8] - Tbilisi, Georgia ranks No. 2, recognized for its vibrant energy and artistic scene [9] - The top 10 trending destinations also include Quy Nhon, Puerto Escondido, Milan, Glasgow, Abu Dhabi, Recife, and San Carlos de Bariloche [10] Solo Travel Destinations - Dublin, Ireland is highlighted as the top Solo Travel Destination, offering rich history, diverse food options, and walkable attractions [12] Food Destinations - London has climbed to become the No. 1 Food Destination in the World, followed by Dubai at No. 2, showcasing a diverse culinary landscape [14][15] Culture Destinations - Singapore is ranked as the No. 1 Culture Destination, taking the lead from Bali, with London and Krakow following closely [18][24] Honeymoon Destinations - Tripadvisor emphasizes the most romantic Honeymoon Destinations, providing a variety of scenic and intimate locations for couples [20]

Core Viewpoint - Expedia (EXPE) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements due to their large transactions [4]. Recent Performance and Outlook - Expedia's earnings estimates have been rising, with a 13.1% increase in the Zacks Consensus Estimate over the past three months, projecting earnings of $15.09 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - The upgrade to Zacks Rank 1 places Expedia in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks are considered for strong buy recommendations, highlighting their superior earnings estimate revisions [9][10].

Registered participants will receive a confirmation email containing the Zoom access link and alternative phone dial-in details. GURUGRAM, India & NEW YORK--(BUSINESS WIRE)--MakeMyTrip Limited (Nasdaq: MMYT) plans to report its fiscal 2026 third quarter financial and operating results before markets open on Wednesday, January 21, 2026. The company will post the release on its Investor Relations website at https://investors.makemytrip.com/ and will not distribute over newswires. A live Zoom Webinar with the ...

Key highlights from BABA — As highlighted in our latest FY3Q26 preview; 1) macro and consumption willingness turned softer than expected in CY4Q25 which weighed on GMV growth; together with high base/lapse of 0.6% fee/QZT benefit, it has put pressure to CMR growth and EBITA; 2) mgmt reiterated strategic investment commitment in food delivery/quick commerce and target to further increase volume and GMV market share in CY2026 with focus on growing higher AOV orders; 3) BABA commented demand for cloud infrastr ...

Group 1: Market Overview - The beginning of 2026 is an opportune time for portfolio review and adjustments to enhance returns, influenced by factors such as AI sector optimism, Federal Reserve monetary policy, geopolitical concerns, and tariffs [1] - Retail investors face challenges in interpreting market signals and achieving solid returns amid these conditions [1] Group 2: Broker Recommendations - Following brokers' recommendations can simplify investment decisions, with stocks like TripAdvisor Inc. (TRIP), Marathon Petroleum Corporation (MPC), and J.B. Hunt Transport Services (JBHT) highlighted as potential investments [2] - Brokers develop informed views on companies through direct engagement with management, analysis of public disclosures, and participation in earnings calls, providing context for stock performance [3] Group 3: Stock Upgrades and Performance - Broker upgrades are often based on new, potentially non-public information, and can indicate a potential inflection point in stock performance [4] - A broker upgrade is one of many factors to consider for long-term returns, which should also include business quality, valuation, industry dynamics, and investor risk tolerance [5] Group 4: Stock Screening Strategy - A screening strategy identifies stocks with broker rating upgrades of 1% or more in the past four weeks, priced above $5, and with an average 20-day volume greater than 100,000 [6] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have a proven success record, and those with a VGM Score of A or B combined with a Zacks Rank 1 or 2 show the best upside potential [7] Group 5: Company-Specific Insights - TripAdvisor (TRIP) is expected to see a 35.1% year-over-year earnings increase in 2026, with a 4.8% upward revision in broker ratings [8][9] - Marathon Petroleum (MPC) is projected to experience a 38.7% earnings surge in 2026, supported by a 5% increase in broker ratings [9][10] - J.B. Hunt Transport (JBHT) anticipates an 18.2% rise in earnings for 2026, with a 4% broker rating upgrade [9][12]

Upgrades - Wells Fargo upgraded Airbnb (ABNB) to Equal Weight from Underweight with a price target of $128, up from $118, citing two years of share underperformance and opportunities in hotel supply and sponsored listings, along with relative insulation from AI risk [2] - Barclays also upgraded Airbnb to Equal Weight from Underweight with a price target of $120, up from $107 [2] - Susquehanna upgraded American Airlines (AAL) to Positive from Neutral with a price target of $20, up from $14, noting a constructive fundamental backdrop for airlines into fiscal 2026 [2] - JPMorgan double upgraded Southwest (LUV) to Overweight from Underweight with a price target of $60, up from $36, highlighting a potential for a $5 earnings per share outlook for 2026 [2] - Berenberg upgraded CrowdStrike (CRWD) to Buy from Hold with an unchanged price target of $600, citing valuation following recent underperformance [2] - BofA upgraded FedEx (FDX) to Buy from Neutral with a price target of $365, expecting demand to be aided by infrastructure investments and $1.4 trillion in expected expenditures over the next three years [2]

Core Insights - Tapasya Fund achieved a net return of 23.5% in 2025, outperforming the S&P 500's return of 17.9% [1] - The fund's performance was bolstered by developments in tariffs and the influence of Artificial Intelligence (AI), which helped the market reach over 38 new all-time highs [1] - The fund aims to mitigate sector-specific risks to avoid significant impacts on the portfolio during market downturns [1] Company Insights: Airbnb, Inc. (NASDAQ:ABNB) - Airbnb, Inc. reported a revenue of $4.1 billion in Q3 2025, reflecting a year-over-year increase of 10% [4] - The stock had a one-month return of 8.00% and a 52-week gain of 6.97%, with a closing price of $138.66 per share on January 8, 2026, and a market capitalization of $84.893 billion [2] - Tapasya Fund sold its position in Airbnb, citing opportunity cost for redeploying capital into potentially higher-return investments, exiting at a small profit [3]

Citi Research Jan 5, 2026 Pan-Asia Internet Pan-Asia Internet Analysts | | Country | Contact Details | | | --- | --- | --- | --- | | Asia Pacific | | | | | Alicia Yap | Head of Pan Asia Internet Research | +852 2501 2773 | alicia.yap@citi.com | | Brian Gong | China Internet | +852 2501 2747 | brian.gong@citi.com | | Vicky Wei | China Internet | +852 2501 2489 | vicky.wei@citi.com | | Nelson Cheung | China Internet | +852 2501 2728 | nelson.cheung@citi.com | | Ferry Wong | Asean Internet | +62 21 2924 9213 | ...