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Are Investors Undervaluing Expedia Group (EXPE) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Expedia Group (EXPE - Free Report) . EXPE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.98, which compares to its industry's average of 32.27. Over the past year, EXPE's Forward P/E has been as high as 23.53 and as low as 9.51, with a median of 12.48.

We also note that EXPE holds a PEG ratio of 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. EXPE's PEG compares to its industry's average PEG of 2.01. Within the past year, EXPE's PEG has been as high as 1.41 and as low as 0.68, with a median of 0.88.

We should also highlight that EXPE has a P/B ratio of 4.35. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. EXPE's current P/B looks attractive when compared to its industry's average P/B of 4.56. Over the past year, EXPE's P/B has been as high as 8.73 and as low as 3.52, with a median of 4.70.

Finally, investors will want to recognize that EXPE has a P/CF ratio of 10.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. EXPE's current P/CF looks attractive when compared to its industry's average P/CF of 16.33. Over the past 52 weeks, EXPE's P/CF has been as high as 25.03 and as low as 7.39, with a median of 9.91.

JD.com (JD - Free Report) may be another strong Internet - Commerce stock to add to your shortlist. JD is a # 2 (Buy) stock with a Value grade of A.

JD.com is currently trading with a Forward P/E ratio of 16.29 while its PEG ratio sits at 1.02. Both of the company's metrics compare favorably to its industry's average P/E of 32.27 and average PEG ratio of 2.01.

JD's price-to-earnings ratio has been as high as 33.69 and as low as 14.54, with a median of 23.39, while its PEG ratio has been as high as 1.25 and as low as 0.73, with a median of 1.06, all within the past year.

Additionally, JD.com has a P/B ratio of 1.67 while its industry's price-to-book ratio sits at 4.56. For JD, this valuation metric has been as high as 2.54, as low as 1.30, with a median of 2.03 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Expedia Group and JD.com are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EXPE and JD feels like a great value stock at the moment.


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