2024 proved exceptionally kind to US stocks – but a number of them are still trading at a significant discount at writing, according to experts at Trivariate Research.
And they are particularly bullish on two of them: First Solar Inc and Expedia Group Inc.
Why? Primarily because their forward price-to-earnings multiples have slipped significantly even though they have reported positive earnings in four (at least) of the past five years.
Here’s what else makes FSLR and EXPE worth owning or 2025.
First Solar Inc (NASDAQ: FSLR)
A close to 40% decline in First Solar over the past six months has created an opportunity for investors to build a position in this clean energy name at a deep discount.
Part of the weakness in FSLR has been related to investors’ concerns that Donald Trump could choose to rescind the Inflation Reduction Act as he returns to the White House in January.
But Trivariate analysts are confident that First Solar stock will prove to be a winner under the Trump administration as it’s the largest solar panel manufacturer in the United States.
Plus, the Nasdaq-listed firm could see a decline in competition due to the expected increase in tariffs on foreign goods in 2025.
Wall Street currently sees an upside in First Solar shares to $274 on average, indicating potential for about a 50% increase from current levels.
The company based out of Tempe, Arizona bought back $500 million worth of its shares in Q3.
FSLR does not, however, pay a dividend at the time of writing.
Expedia Group Inc (NASDAQ: EXPE)
Expedia stock is currently up more than 70% versus its year-to-date low in May. Still, Trivariate Research is convinced it’s not particularly expensive to own at about 13 times forward.
The investment firm is bullish on EXPE because it’s well-positioned to benefit from the US travel market that’s already showing signs of an uptick.
Expedia saw a better-than-expected increase in room night growth in its latest reported quarter.
The travel technology company raised its full-year guidance for bookings and EBITDA as well in November.
EXPE may be worth owning for 2025 as its One-Key initiative is gaining traction while Vrbo – its vacation rental platform has already returned to positive growth.
Additionally, the company’s advertising business is showing exciting year-on-year growth as well.
Expedia repurchased about $1.6 billion worth of its shares in 2024. Buybacks reduce the number of shares outstanding, which can increase the earnings per share (EPS) and potentially increase the stock price.
The move is generally viewed as a vote of confidence from management in the company’s prospects.
Much like FSLR, Expedia stock doesn’t pay a dividend at writing either.
Earlier this year, Uber Technologies was reported as interested in buying Expedia Group Inc.
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