Back to top

Image: Bigstock

Expedia (EXPE) Stock Dips While Market Gains: Key Facts

Read MoreHide Full Article

Expedia (EXPE - Free Report) ended the recent trading session at $145.66, demonstrating a -1.96% swing from the preceding day's closing price. This change lagged the S&P 500's 0.22% gain on the day. Elsewhere, the Dow gained 0.36%, while the tech-heavy Nasdaq added 0.32%.

Heading into today, shares of the online travel company had lost 4.34% over the past month, lagging the Retail-Wholesale sector's gain of 0.36% and the S&P 500's gain of 1.61% in that time.

The investment community will be closely monitoring the performance of Expedia in its forthcoming earnings report. The company is scheduled to release its earnings on February 8, 2024. The company is predicted to post an EPS of $1.67, indicating a 32.54% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 10.1% from the year-ago period.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Expedia. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.83% rise in the Zacks Consensus EPS estimate. Expedia presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Expedia currently has a Forward P/E ratio of 11.81. Its industry sports an average Forward P/E of 19.39, so one might conclude that Expedia is trading at a discount comparatively.

It's also important to note that EXPE currently trades at a PEG ratio of 0.47. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.55.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 99, which puts it in the top 40% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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