If you think most Wall Street analysts are clueless, or full of (fill in the blank), we’ve got a stock for you.
Only 2 of the 28 analysts covering TripAdvisor (TRIP), just 7%, have a buy rating on the company.
“Nobody likes it,” says Hedgeye Gaming, Lodging and Leisure analyst Todd Jordan, who covers the stock along with Internet & Media analyst Hesham Shaaban. “But we see this stock as a coiled spring,” Jordan explains in the video above.
Wall Street is sour on the stock because the company issued flat EBITDA (earnings before interest, taxes, depreciation and amortization) guidance for 2017. Oh, and shares are down -32% in the last 6 months.
That’s an opportunity.
“The company is ramping up their ad spending which we think is going to pay dividends on the top line in 2017,” Jordan says, with profitability getting a nice lift in 2018.
Click here for all the key discussion points from Jordan and Shaaban’s recent institutional research call, “TripAdvisor Best Idea Call: The Inflection Is Underway.”