Expedia (EXPE) Exceeds Market Returns: Some Facts to Consider
In the latest market close, Expedia (EXPE) reached $155.31, with a +0.51% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.17%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq gained 0.2%.
Shares of the online travel company have appreciated by 12.88% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 8.63% and the S&P 500's gain of 4.71%.
Analysts and investors alike will be keeping a close eye on the performance of Expedia in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.66, signifying a 31.75% 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.
EXPE's full-year Zacks Consensus Estimates are calling for earnings of $9.63 per share and revenue of $12.83 billion. These results would represent year-over-year changes of +41.83% and +10.01%, respectively.
Investors should also note any recent changes to analyst estimates for Expedia. Recent revisions tend to reflect the latest near-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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.88% upward. Expedia presently features a Zacks Rank of #2 (Buy).
In the context of valuation, Expedia is at present trading with a Forward P/E ratio of 16.05. This represents a discount compared to its industry's average Forward P/E of 19.69.
One should further note that EXPE currently holds a PEG ratio of 0.63. 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 average PEG ratio for the Internet - Commerce industry stood at 0.63 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
