We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Expedia (EXPE) Gains But Lags Market: What You Should Know
Read MoreHide Full Article
Expedia (EXPE - Free Report) closed at $110.81 in the latest trading session, marking a +0.3% move from the prior day. This change lagged the S&P 500's 0.93% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 1.71%.
Prior to today's trading, shares of the online travel company had gained 23.51% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.91% and the S&P 500's gain of 4.61% in that time.
Expedia will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.41, up 22.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.35 billion, up 5.46% from the prior-year quarter.
EXPE's full-year Zacks Consensus Estimates are calling for earnings of $9.15 per share and revenue of $12.88 billion. These results would represent year-over-year changes of +34.76% and +10.38%, respectively.
Any recent changes to analyst estimates for Expedia should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.7% lower. Expedia is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Expedia has a Forward P/E ratio of 12.07 right now. Its industry sports an average Forward P/E of 19.04, so we one might conclude that Expedia is trading at a discount comparatively.
Also, we should mention that EXPE has a PEG ratio of 1.21. 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 had an average PEG ratio of 1 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Expedia (EXPE) Gains But Lags Market: What You Should Know
Expedia (EXPE - Free Report) closed at $110.81 in the latest trading session, marking a +0.3% move from the prior day. This change lagged the S&P 500's 0.93% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 1.71%.
Prior to today's trading, shares of the online travel company had gained 23.51% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.91% and the S&P 500's gain of 4.61% in that time.
Expedia will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.41, up 22.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.35 billion, up 5.46% from the prior-year quarter.
EXPE's full-year Zacks Consensus Estimates are calling for earnings of $9.15 per share and revenue of $12.88 billion. These results would represent year-over-year changes of +34.76% and +10.38%, respectively.
Any recent changes to analyst estimates for Expedia should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.7% lower. Expedia is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Expedia has a Forward P/E ratio of 12.07 right now. Its industry sports an average Forward P/E of 19.04, so we one might conclude that Expedia is trading at a discount comparatively.
Also, we should mention that EXPE has a PEG ratio of 1.21. 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 had an average PEG ratio of 1 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 63, putting it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.