Yahoo Finance Is It The Right Time To Buy Expedia Inc (EXPE)?
Today we're going to take a look at the well-established Expedia Inc (NASDAQ:EXPE). The company's stock saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $159.5 and falling to the lows of $141.41. This high level of volatility gives investors the opportunity to enter into the stock, and potentially buy at an artificially low price. A question to answer is whether EXPE's current trading price of $143.12 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at EXPE’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. Check out our latest analysis for Expedia
What's the opportunity in EXPE?
Good news, investors! EXPE is still a bargain right now. My valuation model shows that the stock’s value should be $185.55 but it is currently trading at $143.12 on the share market, meaning that there is still an opportunity to buy now. Another thing to keep in mind is that EXPE’s share price is quite stable relative to the rest of the market, as indicated by its low beta. This means that if you believe the current share price should move towards its intrinsic value over time, a low beta could suggest it is not likely to reach that level anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range again.
What does the future of EXPE look like?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. EXPE’s earnings over the next few years are expected to double, indicating a very optimistic future ahead. This should lead to stronger cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? Since EXPE is currently undervalued, it may be a great time to increase your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current undervaluation.
Are you a potential investor? If you’ve been keeping an eye on EXPE for a while, now might be the time to enter the stock. Its buoyant future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy EXPE. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Expedia. You can find everything you need to know about EXPE in the latest infographic research report. If you are no longer interested in Expedia, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
