Expedia (EXPE) closed at $93.96 in the latest trading session, marking a +1.68% move from the prior day. This move outpaced the S&P 500's daily gain of 0.83%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq added 4.46%.
Heading into today, shares of the online travel company had lost 3.87% over the past month, lagging the Retail-Wholesale sector's gain of 5.66% and the S&P 500's gain of 4.04% in that time.
Wall Street will be looking for positivity from Expedia as it approaches its next earnings report date. This is expected to be May 4, 2023. On that day, Expedia is projected to report earnings of -$0.04 per share, which would represent year-over-year growth of 91.67%. Our most recent consensus estimate is calling for quarterly revenue of $2.68 billion, up 19.28% from the year-ago period.
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 should also note any recent changes to analyst estimates for Expedia. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 is currently a Zacks Rank #3 (Hold).
Investors should also note Expedia's current valuation metrics, including its Forward P/E ratio of 9.98. Its industry sports an average Forward P/E of 21.59, so we one might conclude that Expedia is trading at a discount comparatively.
Also, we should mention that EXPE has a PEG ratio of 0.71. 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. EXPE's industry had an average PEG ratio of 1.21 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% 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.
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