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Expedia (EXPE) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Expedia (EXPE - Free Report) closed at $116.18, marking a -0.47% move from the previous day. This change lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 7.26%.
Heading into today, shares of the online travel company had gained 33.97% over the past month, outpacing the Retail-Wholesale sector's gain of 10.13% and the S&P 500's gain of 5.73% in that time.
Wall Street will be looking for positivity from Expedia as it approaches its next earnings report date. This is expected to be February 9, 2023. On that day, Expedia is projected to report earnings of $1.85 per share, which would represent year-over-year growth of 74.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.68 billion, up 17.72% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Expedia. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 7.36% higher. Expedia is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Expedia is holding a Forward P/E ratio of 12.67. Its industry sports an average Forward P/E of 23.15, so we one might conclude that Expedia is trading at a discount comparatively.
We can also see that EXPE currently has a PEG ratio of 0.91. 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. The Internet - Commerce was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 43, which puts it in the top 18% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.