Daan | InvestInsights

Booking Holdings is a dominant, highly profitable compounder that continues to strengthen its lead and remains brilliantly positioned for sustained growth in the decade ahead. The company continues to outgrow its peers, such as Airbnb and Expedia, steadily expanding its moat, improving profitability, and gaining market share in every major region. Booking is not getting disrupted by Airbnb in the slightest. Instead, it continues to gain market share. The company has brilliant financials, growing its revenue at a low-to-mid-teens rate, and has improved its EBITDA margin sequentially in every single quarter over the last three years. It now generates over $8 billion in FCF annually at a 38% FCF margin, and nearly all of this cash is returned to shareholders.

American Express is a well-positioned business in a steadily growing industry. The company's focus on younger demographics, high-income individuals, premium card offerings, and international expansion should allow it to outpace the industry and deliver solid growth. Management is confident in delivering 10%+ revenue growth and mid-teens EPS growth on a sustainable basis. The stock is currently trading at a discount to its historical average, presenting a compelling investment opportunity. A conservative price target of $367 by the end of 2027 is proposed, with the potential for higher returns if the market assigns a higher multiple.