UBS Says These 4 Pandemic-Thrashed Stocks Have Become Cheap Relative To Their Earnings
The benefits of reopening post-pandemic have not yet been factored in for these four stocks relative to their earnings, according to UBS analysts.
TripAdvisor Inc (NASDAQ: TRIP): The travel company’s shares have risen marginally by 1.84% on a year-to-date basis, but underperformed the S&P 500, which has shot up 14.5% in the same period.
The shares have risen nearly 18% since Nov. 9, when Pfizer Inc (NYSE: PFE) released data from its phase 3 trial.
Choice Hotels International, Inc (NYSE: CHH): Choice Hotels is yet another travel-related stock, which according to UBS is cheap on “normalized earnings.” Choice Hotels shares have shot up 1.7% since the positive developments around the vaccine on Nov. 9. The stock has returned 4.79% on a YTD basis.
Zimmer Biomet Holdings, Inc (NYSE: ZBH): Another UBS pick, the prosthetic hip maker’s revenue fell 38% year-over-year during the second quarter but then rebounded in the summer. On a YTD basis, the shares of the Indiana-based company have declined by 0.42%.
Alliance Data Systems Corp (NYSE: ADS): Alliance Data shares have fallen 25.48% for the year. The provider of loyalty and marketing services was removed from the S&P 500 this summer along with Harley-Davidson Inc (NYSE: HOG) and Nordstorm Inc (NYSE: JWN), which likely came in the way of the company rebounding from its lows in the spring, according to UBS researchers.
Price Action: On Friday, TripAdvisor shares closed 8.18% higher at $30.94, Choice Hotels shares closed 4.17% higher at $108.38, Zimmer Biomet shares closed 1.92% higher at $149.05 and Alliance Data Systems shares closed 1.41% higher at $83.61.
Latest Ratings for TRIP
Dec 2020 | Bernstein | Initiates Coverage On | Outperform | |
Nov 2020 | Needham | Maintains | Buy | |
Aug 2020 | Wells Fargo | Maintains | Equal-Weight |
View More Analyst Ratings for TRIP
View the Latest Analyst Ratings
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