Expensive stocks often command premium valuations because the market thinks their business models are exceptional.
However, the downside is that high expectations are already baked into their prices, leaving little room for error if they stumble even slightly.
Travel stocks are primed for a comeback now that consumer sentiment is improving. Here are three stocks with the potential to outperform the rest of the year.
(BPT) - According to a 2025 AARP survey, 73% of adults said that they were worried about rising prices, which was unchanged from the findings over the past two years of the survey. The current economic climate indeed has consumers feeling the impact of high prices, making everyday savings strategies more important than ever.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
Whether it be online shopping or social media, secular forces are propelling consumer internet businesses forward. But it’s not all sunshine and rainbows as consumer purchasing power can make or break demand.
This unpredictability is weighing on returns as the industry has posted a flat return over the past six months, close to the S&P 500’s performance.
Online travel agency Expedia (NASDAQ:EXPE) missed Wall Street’s revenue expectations in Q1 CY2025 as sales rose 3.4% year on year to $2.99 billion. Its non-GAAP profit of $0.47 per share was 31% above analysts’ consensus estimates.
A cash-heavy balance sheet is often a sign of strength, but not always.
Some companies avoid debt because they have weak business models, limited expansion opportunities, or inconsistent cash flow.
Expedia trades at $171.01 per share and has stayed right on track with the overall market, losing 7.4% over the last six months while the S&P 500 is down 2.5%. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
As the US market prepares to open on Thursday, let's get an early glimpse into the pre-market session and identify the S&P500 stocks leading the pack in terms of gains and losses.
Volatility cuts both ways - while it creates opportunities, it also increases risk, making sharp declines just as likely as big gains.
This unpredictability can shake out even the most experienced investors.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
The company also reiterated its full-year total revenue guidance of $250 million to $260 million and net product sales guidance of $240 million to $250 million.
