Expedia (EXPE - Free Report) closed the most recent trading day at $110.08, moving +0.9% from the previous trading session. This change outpaced the S&P 500's 0.49% gain on the day. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, added 0.43%.
Heading into today, shares of the online travel company had gained 15.21% over the past month, outpacing the Retail-Wholesale sector's gain of 3.62% and the S&P 500's gain of 2.9% in that time.
Wall Street will be looking for positivity from EXPE as it approaches its next earnings report date. In that report, analysts expect EXPE to post earnings of $1.18 per share. This would mark a year-over-year decline of 4.84%. Meanwhile, our latest consensus estimate is calling for revenue of $2.75 billion, up 7.62% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.11 per share and revenue of $12.08 billion, which would represent changes of +4.98% and +7.62%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for EXPE. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 3.2% lower. EXPE is currently sporting a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that EXPE has a Forward P/E ratio of 17.86 right now. This represents a discount compared to its industry's average Forward P/E of 21.7.
Also, we should mention that EXPE has a PEG ratio of 1.48. 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. The Internet - Commerce was holding an average PEG ratio of 1.42 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.