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Expedia (EXPE) Outpaces Stock Market Gains: What You Should Know

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Expedia (EXPE - Free Report) closed the latest trading day at $153.98, indicating a +1.35% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.76%. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 1.12%.

The the stock of online travel company has risen by 0.09% in the past month, lagging the Retail-Wholesale sector's gain of 1.32% and the S&P 500's gain of 2.5%.

The upcoming earnings release of Expedia will be of great interest to investors. The company's earnings report is expected on February 8, 2024. On that day, Expedia is projected to report earnings of $1.67 per share, which would represent year-over-year growth of 32.54%. At the same time, our most recent consensus estimate is projecting a revenue of $2.88 billion, reflecting a 10.1% rise from the equivalent quarter last year.

It is also important to note the recent changes to analyst estimates for Expedia. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.83% higher. Currently, Expedia is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Expedia has a Forward P/E ratio of 12.07 right now. This represents a discount compared to its industry's average Forward P/E of 19.74.

Meanwhile, EXPE's PEG ratio is currently 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. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.59.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 107, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.


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