Stock on Focus: TripAdvisor Inc. (TRIP)

Company Profile:

TripAdvisor, Inc. is an online travel company, which owns and operates a portfolio of online travel brands. The Company operates in two segments, Hotel and Other. The Hotel segment’s services include making hotel room nights available for price comparison and booking, including instant booking feature, as well as subscription-based hotel products, such as Business Listings, and transaction-based hotel products, such as Jetsetter and Tingo. Its Other segment consists of three segments, which include Attractions, Restaurants and Vacation Rentals. The Company, through viator.com (Viator), provides information and services for researching and booking destination activities around the world. Its Restaurants business consists of its Websites that provide online and mobile reservation services. The Company offers individual property owners and property managers to list their properties available for rental and connect with travelers. TripAdvisor, Inc. was founded in 2000 and is headquartered in Needham, Massachusetts.

Recent News:

TripAdvisor, Inc. will audiocast a conference call to answer questions regarding its first quarter financial results and management’s published remarks on Thursday, May 5, 2016 at 8:30 a.m. Eastern Time. After the close of market trading on Wednesday, May 4, TripAdvisor will issue a press release reporting results and will simultaneously publish management’s prepared remarks.

The Global Economic Contribution of TripAdvisor’s report, conducted by Oxford Economics on behalf of TripAdvisor, reveals that globally TripAdvisor generated 22 million tourism trips and 352 million tourism nights over the course of a year, as well $64 billion in incremental travel expenditures. TripAdvisor’s $85.7 billion influence equivalent to two-thirds of all U.S. auto xxports in 2014.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

TRIP’s strengths can be seen in its better growth, better profitability and better efficiency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 52.88. The current P/CF ratio indicates it is undervalued compared to the average P/CF ratio of the industry and the sector. We rate TripAdvisor Inc. (TRIP) a Strong BUY.