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Is Expedia Group (EXPE) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Expedia Group (EXPE - Free Report) is a stock many investors are watching right now. EXPE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.44. This compares to its industry's average Forward P/E of 27.86. Over the past 52 weeks, EXPE's Forward P/E has been as high as 12.94 and as low as 8.08, with a median of 9.90.

Investors will also notice that EXPE has a PEG ratio of 0.49. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EXPE's industry currently sports an average PEG of 0.96. EXPE's PEG has been as high as 1.14 and as low as 0.30, with a median of 0.68, all within the past year.

Finally, we should also recognize that EXPE has a P/CF ratio of 9.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. EXPE's P/CF compares to its industry's average P/CF of 16.95. Within the past 12 months, EXPE's P/CF has been as high as 12.12 and as low as 5.83, with a median of 8.76.

If you're looking for another solid Internet - Commerce value stock, take a look at Travelzoo (TZOO - Free Report) . TZOO is a # 2 (Buy) stock with a Value score of A.

Additionally, Travelzoo has a P/B ratio of 21.40 while its industry's price-to-book ratio sits at 5.31. For TZOO, this valuation metric has been as high as 90.24, as low as 8.19, with a median of 16.50 over the past year.

These are only a few of the key metrics included in Expedia Group and Travelzoo strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EXPE and TZOO look like an impressive value stock at the moment.


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