Back to top

Image: Bigstock

Expedia (EXPE) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

In the latest trading session, Expedia (EXPE - Free Report) closed at $104.16, marking a -0.6% move from the previous day. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 3.58%.

Heading into today, shares of the online travel company had gained 8.76% over the past month, outpacing the Retail-Wholesale sector's gain of 5.3% and the S&P 500's gain of 5.01% in that time.

Investors will be hoping for strength from Expedia as it approaches its next earnings release. On that day, Expedia is projected to report earnings of $2.40 per share, which would represent year-over-year growth of 22.45%. Our most recent consensus estimate is calling for quarterly revenue of $3.36 billion, up 5.53% from the year-ago period.

EXPE's full-year Zacks Consensus Estimates are calling for earnings of $9.14 per share and revenue of $12.89 billion. These results would represent year-over-year changes of +34.61% and +10.46%, respectively.

It is also important to note the recent changes to analyst estimates for Expedia. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate has moved 1.71% lower within the past month. 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 11.47 right now. Its industry sports an average Forward P/E of 19.17, so we one might conclude that Expedia is trading at a discount comparatively.

Meanwhile, EXPE's PEG ratio is currently 1.15. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. EXPE's industry had an average PEG ratio of 0.95 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.

To follow EXPE in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Expedia Group, Inc. (EXPE) - free report >>

Published in