Why the Market Dipped But Expedia (EXPE) Gained Today
Expedia (EXPE) ended the recent trading session at $135.78, demonstrating a +1.76% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.65%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq depreciated by 1.16%.
Prior to today's trading, shares of the online travel company had lost 16.33% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.99% and the S&P 500's gain of 3.4% in that time.
The investment community will be closely monitoring the performance of Expedia in its forthcoming earnings report. It is anticipated that the company will report an EPS of -$0.36, marking an 80% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.8 billion, up 5.19% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.25 per share and a revenue of $14.06 billion, indicating changes of +26.42% and +9.49%, respectively, from the former year.
Any recent changes to analyst estimates for Expedia should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.14% lower. Right now, Expedia possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Expedia is at present trading with a Forward P/E ratio of 10.9. For comparison, its industry has an average Forward P/E of 19.14, which means Expedia is trading at a discount to the group.
It's also important to note that EXPE currently trades at a PEG ratio of 0.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.54.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 143, which puts it in the bottom 44% 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.
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
