Yahoo Finance Expedia (EXPE) Dips More Than Broader Markets: What You Should Know
Expedia (EXPE) closed at $94.02 in the latest trading session, marking a -1.37% move from the prior day. This move lagged the S&P 500's daily loss of 0.6%. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 2.87%.
Prior to today's trading, shares of the online travel company had gained 1.8% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.93% and the S&P 500's gain of 6.22% in that time.
Wall Street will be looking for positivity from Expedia as it approaches its next earnings report date. The company is expected to report EPS of -$0.04, up 91.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.68 billion, up 19.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.26 per share and revenue of $12.78 billion. These totals would mark changes of +36.38% and +9.55%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Expedia. Recent revisions tend to reflect the latest near-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. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Expedia is currently a Zacks Rank #3 (Hold).
Digging into valuation, Expedia currently has a Forward P/E ratio of 10.3. Its industry sports an average Forward P/E of 21.87, so we one might conclude that Expedia is trading at a discount comparatively.
It is also worth noting that EXPE currently has a PEG ratio of 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.16 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 87, which puts it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
