A Trio of Overlooked IPOs

Focus: STRATEGIES

Marshall Hargrave Image Marshall Hargrave Contributing Editor, Wyatt Investment Research

Technology companies get a lot of hype, but they don’t always payoff for retail investors. It’s tough to pick winners among tech IPOs, states Marshall Hargrave, editor of Wyatt Research's Daily Profit.

Our research has identified three top IPOs from the last year that investors may be overlooking. Shares of all three are still trading at attractive prices. All three are still attractive buying opportunities, after having been overlooked by much of the market. 

Trivago (TRVG) shares are up just 10% from its IPO in December. Users can search and compare hotels and rates on Trivago, making it a trio in the industry with Priceline (PCLN) and Expedia (EXPE). Trivago was the last “big” IPO of 2016, but shares are flat in 2017.

It’s worth noting that Expedia (EXPE) owns the majority stake in Trivago, and Priceline (PCLN) is where it gets a lot of its revenue. Considering Priceline and Expedia are both very solid and stable companies, having such a close relationship isn’t necessarily a negative.

Trivago continues to grow revenues nicely, and trading at just two times sales, it’s trading at a discount to major peers. More people are traveling, and that is a powerful trend for Trivago and the travel industry.