Analyst Says Expedia Stock is 'Darn Cheap'

Mark Mahaney, Evercore ISI head of internet research, said in a latest program on CNBC that Expedia (EXPE) is his top pick because the stock’s valuation is cheap. The analyst explains the reasons why he’s bullish on the stock:

“Expedia is one of our top picks for the year. It’s kind of a contrarian call on our part, but part of it is it’s darn cheap. This thing still trades well under a market multiple, 13–14 times earnings. You have new management in place. If they are better executors and you can see the growth rates between them and the industry leaders, Booking and Airbnb Inc (NASDAQ:ABNB), they have been converging. If that convergence continues, the valuation convergence is going to continue too, and the best way to play that I think is to be long Expedia. That’s one of the reasons why it’s one of our top picks.”

While we acknowledge the potential of EXPE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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