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Expedia (EXPE) Gains As Market Dips: What You Should Know

Expedia (EXPE) closed the most recent trading day at $92.03, moving +1.18% from the previous trading session. This change outpaced the S&P 500's 0.21% loss on the day. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.64%.

Prior to today's trading, shares of the online travel company had lost 4.37% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.29% and the S&P 500's gain of 7.71% in that time.

Expedia will be looking to display strength as it nears its next earnings release. In that report, analysts expect Expedia to post earnings of -$0.04 per share. This would mark year-over-year growth of 91.67%. 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.

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Any recent changes to analyst estimates for Expedia should also be noted by investors. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Expedia currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Expedia is currently trading at a Forward P/E ratio of 9.82. Its industry sports an average Forward P/E of 22.23, so we one might conclude that Expedia is trading at a discount comparatively.

We can also see that EXPE currently has a PEG ratio of 0.7. 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 was holding an average PEG ratio of 1.16 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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

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Zacks Investment Research