Morningstar

TripAdvisor Is Well-Positioned for Long-Term Growth

TripAdvisor Is Well-Positioned for Long-Term Growth
Securities In This Article
Tripadvisor Inc
(TRIP)

Dan Wasiolek: TripAdvisor may be best known for reviews, but its strong network of travel content, recent addition of direct booking capability, and attractive discount to our fair value estimate make it a stock that investors should have on their radar.

TripAdvisor shares and revenue have seen recent pressure, as it launches its direct booking feature, Instant Book, globally. This is because there's a learning curve of educating customers on direct-booking availability, as well as building knowledge on improving Instant Book conversion. Ultimately, we see this headwind as transitory because Instant Book enhances the user experience.

Outside of Instant Book, TripAdvisor has a strong network advantage. To illustrate, December visitation to TripAdvisor totaled 116 million versus 26 million for narrow-moat Marriott. Also, TripAdvisor hosts a leading supply of travel content with over 800,000 vacation rentals, 1 million hotels, 4 million restaurants, and 700,000 attractions.

We see narrow-moat TripAdvisor as well-positioned for long-term growth, and forecast annual sales to average low-double digit growth the next 10 years.

More in Stocks

Consumer Defensives: Despite Angst, Thirsty Investors Have Names to Pursue

Estee Lauder, Kraft Heinz, and Dollar General are our top consumer defensive stocks.
Erin Lash, CFA

Industrials: Many Stocks Overvalued After Q3 Outperformance

Our top stocks in this sector are Chart Industries, Wesco, and CNH Industrial.
Brian Bernard, CFA, CPA

Basic Materials: Despite Index Rise, We See Multiple Long-Term Opportunities

In this sector, our favored stocks are Albemarle, Dow, and FMC.
Andrew Bischof, CFA and Travis Miller

About the Author

Dan Wasiolek

Senior Equity Analyst
More from Author

Dan Wasiolek is a senior equity analyst, AM Consumer, for Morningstar*. He covers gaming, lodging, and online travel. Names covered within the gaming industry are Wynn Resorts, Las Vegas Sands, MGM Resorts, Caesars Entertainment, Penn Entertainment, and DraftKings. In the hotel industry Dan covers Marriott, Hilton, InterContinental, Hyatt, Wyndham, Choice, and Accor. Other travel related names under his coverage are Booking Holdings, Expedia, Airbnb, Tripadvisor, Sabre, and Amadeus.

Before joining Morningstar in 2014, Wasiolek spent 16 years as an analyst and portfolio manager covering US mid- and large-cap strategies for Driehaus Capital Management. During the first half of his time at Driehaus, Dan’s responsibilities as an analyst included analyzing and recommending stocks across all sectors and industries for inclusive in the portfolios. Then in the second half of his tenure at Driehaus, Dan was responsible for stock selection and portfolio management of the US mid- and large-cap strategies, as well as co-managing in-house smaller-cap portfolios.

Wasiolek holds a bachelor’s degree in business administration from Illinois Wesleyan University and a master’s degree in business administration, with a concentration in finance, from the DePaul University Kellstadt School of Business.

* Morningstar Research Services LLC (“Morningstar”) is a wholly owned subsidiary of Morningstar, Inc

Sponsor Center