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Expedia (EXPE) Dips More Than Broader Markets: What You Should Know

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Expedia (EXPE - Free Report) closed at $100.87 in the latest trading session, marking a -1.07% move from the prior day. This change lagged the S&P 500's 0.23% loss on the day. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the online travel company had lost 3.78% in the past month. In that same time, the Retail-Wholesale sector lost 2.81%, while the S&P 500 lost 1.43%.

Investors will be hoping for strength from Expedia as it approaches its next earnings release. In that report, analysts expect Expedia to post earnings of $5.13 per share. This would mark year-over-year growth of 26.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.87 billion, up 6.93% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.52 per share and revenue of $12.82 billion. These totals would mark changes of +40.21% and +9.87%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Expedia. These revisions help to show the ever-changing nature of 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. Within the past 30 days, our consensus EPS projection remained stagnant. Expedia is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Expedia currently has a Forward P/E ratio of 10.71. For comparison, its industry has an average Forward P/E of 20.66, which means Expedia is trading at a discount to the group.

Investors should also note that EXPE has a PEG ratio of 0.39 right now. 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 0.74 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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