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Expedia (EXPE) Surges 5.2%: Is This an Indication of Further Gains?

·2 min read

Expedia (EXPE) shares ended the last trading session 5.2% higher at $173.46. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 5.6% loss over the past four weeks.

Expedia extended its rally, driven by better than expected first-quarter 2021 results. The company witnessed strong growth in vacation rental and a rebound in domestic travel. Further, recovery in travel trends for beach and outdoor destinations remained a positive. The company remains optimistic regarding the widespread availability of coronavirus vaccines amid the COVID-19 induced disruptions in the travel industry.

Price and Consensus

Price Consensus Chart for EXPE
Price Consensus Chart for EXPE

This online travel company is expected to post quarterly loss of $0.60 per share in its upcoming report, which represents a year-over-year change of +85.3%. Revenues are expected to be $1.81 billion, up 220.2% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Expedia, the consensus EPS estimate for the quarter has been revised 0.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on EXPE going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report

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