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Should Value Investors Buy Expedia Group (EXPE) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Expedia Group (EXPE - Free Report) . EXPE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.33, which compares to its industry's average of 26.44. Over the past year, EXPE's Forward P/E has been as high as 12.94 and as low as 8.08, with a median of 9.90.
We also note that EXPE holds a PEG ratio of 0.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EXPE's industry currently sports an average PEG of 0.89. Over the last 12 months, EXPE's PEG has been as high as 1.14 and as low as 0.30, with a median of 0.69.
Finally, we should also recognize that EXPE has a P/CF ratio of 8.70. 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 P/CF compares to its industry's average P/CF of 16.06. 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 8.61.
TripAdvisor (TRIP - Free Report) may be another strong Internet - Commerce stock to add to your shortlist. TRIP is a # 2 (Buy) stock with a Value grade of A.
Shares of TripAdvisor are currently trading at a forward earnings multiple of 11.17 and a PEG ratio of 0.24 compared to its industry's P/E and PEG ratios of 26.44 and 0.89, respectively.
TRIP's Forward P/E has been as high as 31.38 and as low as 9.91, with a median of 12.34. During the same time period, its PEG ratio has been as high as 0.90, as low as 0.22, with a median of 0.38.
TripAdvisor sports a P/B ratio of 2.97 as well; this compares to its industry's price-to-book ratio of 4.90. In the past 52 weeks, TRIP's P/B has been as high as 4.14, as low as 2.40, with a median of 3.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Expedia Group and TripAdvisor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EXPE and TRIP feels like a great value stock at the moment.
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Should Value Investors Buy Expedia Group (EXPE) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Expedia Group (EXPE - Free Report) . EXPE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 11.33, which compares to its industry's average of 26.44. Over the past year, EXPE's Forward P/E has been as high as 12.94 and as low as 8.08, with a median of 9.90.
We also note that EXPE holds a PEG ratio of 0.45. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EXPE's industry currently sports an average PEG of 0.89. Over the last 12 months, EXPE's PEG has been as high as 1.14 and as low as 0.30, with a median of 0.69.
Finally, we should also recognize that EXPE has a P/CF ratio of 8.70. 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 P/CF compares to its industry's average P/CF of 16.06. 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 8.61.
TripAdvisor (TRIP - Free Report) may be another strong Internet - Commerce stock to add to your shortlist. TRIP is a # 2 (Buy) stock with a Value grade of A.
Shares of TripAdvisor are currently trading at a forward earnings multiple of 11.17 and a PEG ratio of 0.24 compared to its industry's P/E and PEG ratios of 26.44 and 0.89, respectively.
TRIP's Forward P/E has been as high as 31.38 and as low as 9.91, with a median of 12.34. During the same time period, its PEG ratio has been as high as 0.90, as low as 0.22, with a median of 0.38.
TripAdvisor sports a P/B ratio of 2.97 as well; this compares to its industry's price-to-book ratio of 4.90. In the past 52 weeks, TRIP's P/B has been as high as 4.14, as low as 2.40, with a median of 3.02.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Expedia Group and TripAdvisor are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EXPE and TRIP feels like a great value stock at the moment.