Experts at Trivariate Research say that 2024 was exceptionally good to US stocks. However, a few of these are trading today at significant discounts.
They are especially bullish about two companies: First Solar Inc. and Expedia Group Inc.
Why? The primary reason is that their price-to earnings multiples are down significantly, despite the fact they’ve reported positive earnings for at least four of the last five years.
What else is there to make FSLR or EXPE a worthwhile investment for 2025?
First Solar Inc. (NASDAQ: FSR)
Investors can now build positions in First Solar at deep discounts. The stock has fallen by almost 40% in the last six months.
Investors’ fears that Donald Trump may choose to rescind Inflation Reduction Act when he returns to his White House post in January has contributed to the weakness of FSLR.
Trivariate’s analysts, however, are certain that First Solar will be the biggest solar panel maker in the United States under Trump.
The Nasdaq listed firm may also see its competition decline due to an expected rise in tariffs for foreign products in 2025.
Wall Street sees First Solar’s shares rising to an average of $274, which is a potential 50% rise from the current level.
In Q3, the Tempe-based company bought back 500 million dollars worth of shares.
FSLR, at this time, does not pay a dividend.
Expedia Group Inc (NASDAQ: EXPE)
Expedia’s stock has risen more than 70 percent since its low point for the year in May. Trivariate Research, however, is still convinced that it’s not expensive at all.
EXPE is a good investment because the US Travel Market, which has already begun to show signs of improvement, will benefit.
Expedia’s latest quarter saw an increase of room nights that was better than expected.
In November, the travel technology firm raised both its bookings guidance and EBITDA for full year.
EXPE could be worth investing in for the year 2025, as One-Key is growing and Vrbo has returned to positive growth.
The company is also experiencing a year-over-year increase in its advertising revenue.
Expedia will repurchase approximately $1.6 billion of shares by 2024. The number of outstanding shares can be reduced, increasing the earnings per share and the price.
This move is viewed by many as an expression of management’s confidence in the future prospects of their company.
Expedia shares are also not dividend paying at the time of writing, just like FSLR.
Uber Technologies was reported to be interested in purchasing Expedia Group Inc. earlier this year.
The post Two cheap stocks to buy heading into 2025 will be updated as new information becomes available.
