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) Stock Sinks As Market Gains: Here's Why
Read MoreHide Full Article
Expedia (EXPE - Free Report) closed at $151.85 in the latest trading session, marking a -0.58% move from the prior day. This change lagged the S&P 500's 0.57% gain on the day. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
The online travel company's shares have seen an increase of 5.42% over the last month, surpassing the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 3.4%.
The upcoming earnings release of Expedia will be of great interest to investors. The company's upcoming EPS is projected at $1.67, signifying a 32.54% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.88 billion, up 10.1% from the year-ago period.
Investors should also pay attention to any latest changes in 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% higher within the past month. Expedia currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Expedia is currently exchanging hands at a Forward P/E ratio of 12.14. This valuation marks a discount compared to its industry's average Forward P/E of 19.35.
We can also see that EXPE currently has a PEG ratio of 0.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.65.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Stock Sinks As Market Gains: Here's Why
Expedia (EXPE - Free Report) closed at $151.85 in the latest trading session, marking a -0.58% move from the prior day. This change lagged the S&P 500's 0.57% gain on the day. On the other hand, the Dow registered a gain of 0.46%, and the technology-centric Nasdaq increased by 0.75%.
The online travel company's shares have seen an increase of 5.42% over the last month, surpassing the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 3.4%.
The upcoming earnings release of Expedia will be of great interest to investors. The company's upcoming EPS is projected at $1.67, signifying a 32.54% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.88 billion, up 10.1% from the year-ago period.
Investors should also pay attention to any latest changes in 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.83% higher within the past month. Expedia currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Expedia is currently exchanging hands at a Forward P/E ratio of 12.14. This valuation marks a discount compared to its industry's average Forward P/E of 19.35.
We can also see that EXPE currently has a PEG ratio of 0.48. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.65.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 27% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.