Chicago, IL – February 21, 2025 – Today, Zacks Investment Ideas feature highlights Palomar Holdings PLMR, Expedia Group EXPE and Gambling.com Group GAMB.
Growth and momentum stocks can offer incredible opportunities, but finding the right ones at the right price can be a challenge. Many high-flying names come with stretched valuations, making them vulnerable to sharp pullbacks. However, some stocks stand out by delivering strong earnings and sales growth, with sturdy price momentum, but still trade at reasonable valuations—offering a more attractive risk-reward profile.
In this article, we highlight three such stocks—Palomar Holdings, Expedia Group and Gambling.com Group, all of which boast strong fundamentals, top Zacks Ranks, and sustained upside trends. With bullish outlooks and manageable downside risks, these stocks are well-positioned to outperform in the year ahead.
Gambling.com is a leading performance marketing company specializing in the online gambling industry. The company provides digital marketing services that connect online gaming operators with new players through its portfolio of websites and proprietary technology. As the online betting market continues to expand—driven by increasing legalization across the US and Europe—Gambling.com stands to benefit from rising demand for its services.
Currently holding a Zacks Rank #2 (Buy), GAMB is projected to deliver impressive revenue growth of 16.4% this year and an even stronger 36.5% next year. On the bottom line, earnings are expected to surge 74% this year, followed by a solid 15% increase next year, highlighting its profitability and scalability. Despite its high-growth trajectory, the stock remains attractively valued, trading at just 15.8x forward earnings, a reasonable multiple given its rapid expansion and strong fundamentals.
With continued momentum in the online gambling industry and robust financial performance, Gambling.com is well-positioned for further upside in 2025.
In a market dominated by AI-driven hype and speculative growth stocks, Palomar Holdingsoffers a fresh alternative—a steadily growing, profitable business in the often-overlooked insurance sector. While insurance may not be the flashiest industry, it boasts a simple and powerful business model, with predictable cash flows and essential products that remain in demand regardless of economic cycles.
Palomar stands out with a Zacks Rank #1 (Strong Buy) rating and extremely robust fundamentals. The company is projected to grow sales by 33.6% this year and another 22.1% next year, while earnings are expected to rise 25% and 18.3%, respectively. Further strengthening its investment case, PLMR trades at just 22.9x forward earnings, well below the industry average, despite its superior growth.
With strong price momentum, fair valuation, and consistently rising earnings estimates, Palomar presents a high-growth yet stable opportunity in today’s uncertain market—one that investors shouldn’t overlook.
Expedia Group is a dominant player in the online travel industry, operating well-known brands such as Expedia, Hotels.com, Vrbo, and Trivago. As one of the largest online travel agencies, Expedia benefits from a vast network effect, leveraging its scale and technology to drive bookings and revenue growth. Despite concerns about consumer spending, demand for travel remains strong, positioning Expedia for continued expansion.
Expedia enjoys a Zacks Rank #2 (Buy) rating and, while it may not deliver the explosive top-line growth seen in some high-flying stocks, it offers a balanced blend of steady revenue expansion and strong earnings growth.Sales are expected to rise 6% this year and 7.3% next year, while earnings are projected to grow 18.2% annually over the next three to five years, reflecting improving margins and operational efficiency.
What makes EXPE particularly attractive is its valuation relative to historical levels. The stock currently trades at a forward earnings multiple of 16.8x, well below its 15-year median of 21.6x. And with the strong earnings growth forecasts it has a PEG ratio of 0.9, which indicates the stock may be cheap based on the metric.
Each of these stocks offers a unique blend of growth, momentum, and value, making them strong candidates for investors looking to capitalize on high-growth opportunities without taking on excessive risk. Furthermore, they appear to be somewhat overlooked stocks, as I have seen few to no analysts talking about these names.
For investors seeking high-growth opportunities at a reasonable valuation, Gambling.com, Palomar Holdings, and Expedia Group are compelling stocks to consider adding to their portfolio.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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