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Expedia (EXPE) closed the most recent trading day at $98.78, moving -1.58% from the previous trading session. This change lagged the S&P 500's daily gain of 2.45%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.17%.
Prior to today's trading, shares of the online travel company had lost 17.48% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.44% and the S&P 500's loss of 5.71% in that time.
Wall Street will be looking for positivity from Expedia as it approaches its next earnings report date. In that report, analysts expect Expedia to post earnings of $1.61 per share. This would mark year-over-year growth of 242.48%. Our most recent consensus estimate is calling for quarterly revenue of $3.06 billion, up 44.83% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.64 per share and revenue of $11.76 billion. These totals would mark changes of +302.42% and +36.73%, respectively, from last year.
It is also important to note the recent changes to 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.17% lower. Expedia currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Expedia is currently trading at a Forward P/E ratio of 15.11. This valuation marks a discount compared to its industry's average Forward P/E of 22.25.
It is also worth noting that EXPE currently has a PEG ratio of 1.01. 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 industry currently had an average PEG ratio of 1.12 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 200, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.