Expedia is the IBD Stock of The Day for Thursday as the travel industry continues rebounding from October lows.
Online travel and booking site Expedia has successfully turned around its earnings after reporting a net loss of $8.78 per share amid the Covid pandemic. In subsequent years, the owner of Hotels.com, Vrbo, Travelocity and Trivago reported earnings of $1.65 per share in 2021, growing to $6.79 per share in 2022.
Expedia in November reported Q3 earnings well above estimates on record revenue for the period due to resilient travel demand, and analysts broadly expect that trend to continue.
A number of firms hoisted their price targets on EXPE stock in January following its late 2023 rally.
B. Riley on Jan. 4 raised its price target on Expedia to $200 from $160 on expectations of "sustained healthy growth" for the business, and margin expansion over the short and medium-term. The company also announced a $5 billion stock repurchase plan in its Q3 results and sports "strong and growing" free cash flows, analyst Naved Khan wrote in a research note. B. Riley maintained a buy rating on EXPE stock.
Argus on Jan. 4 named Expedia one of its top picks for 2024, noting that its risk vs. reward profile is more favorable than its leisure competitors. The firm has a $171 price target on EXPE shares and a buy rating. Piper Sandler raised its price target on Expedia to $180 from $135 on Jan. 8 and maintained a buy rating on the stock. Elsewhere, Mizuho on Jan. 17 lifted its price target on EXPE to $130 from $110 with a neutral rating.
Meanwhile, the Leisure-Travel Booking industry group rebounded more than 31% from its late October lows. EXPE stock rallied 60% since the beginning of November.
Expedia Q4 Earnings
Expedia reports fourth-quarter earnings on Feb. 8 after the close.
FactSet analysts forecast Expedia will report a 32.5% increase in adjusted earnings to $1.67 per share. Revenue is expected to climb 9.7% to $2.87 billion.
Wall Street predicts Q4 bookings increased 7.2% to $21.99 billion.
FactSet anticipates full-year earnings rose to $9.66 per share adjusted on 10% revenue growth to $12.82 billion. 2024 bookings are seen increasing just under 10% to $104.44 billion.
Expedia Stock
Shares cleared an early entry opportunity on Jan. 29 after breaking above a prior high at 153.57. The stock has since retreated below that high-risk entry, but found support Thursday at its 10-week moving average.
The weekly chart shows Expedia stock with an official 155.84 buy point for a six-week flat base.
EXPE stock is on the Leaderboard Leaders Watchlist and ranks fourth in the Leisure-Travel Booking Group according to IBD Stock Checkup. Airbnb leads the group.
Expedia has a 95 Composite Rating out of a best-possible 99. The Composite Rating combines various technical and fundamental indicators into one easy-to-read score. EXPE has a 76 EPS Rating as earning growth recovered following the pandemic. Expedia's relative strength line is off its late December highs but it still has a lofty 95 RS Rating.
EXPE stock was little-changed during Thursday trade.
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