Travel stocks were hot for a while as Covid cases receded and people booked vacations and travel plans. The fast spread of the omicron variant combined with rising energy prices cooled the sector late last year. Judging by the soaring profits and revenue for Expedia, the sector may be poised to take off again.
On Wednesday, top-ranked Expedia's Relative Strength (RS) Rating climbed 16 points to 80, up from a 64 rating the day before. Expedia stock rose 6.4% to 176.53 in Wednesday afternoon trading.
The new 80 RS Rating means that Expedia stock outperformed 80% of all stocks over the past year. In addition to being a huge percentage jump, the 80 rating for the travel services provider has added significance. Market research shows that the stocks that go on to make the biggest gains tend to have an 80 or better RS Rating as they begin their biggest runs.
Expedia Stock Being Accumulated By Big Money Investors
Expedia stock hit an all-time high 217.72. on Feb. 16. It then consolidated amid the market correction. On Monday its stock jumped 5.5% as it cleared its 200-day line, and it was sharply higher Wednesday.
Among its other key ratings, Expedia stock has an 88 Composite Rating, putting it in the top 12% of all companies overall. Its so-so 71 EPS Rating reflects weak profits in the first part of the pandemic as businesses shut down and consumers stayed home. Expedia's C+ Accumulation/Distribution Rating shows slightly more buying than selling of its stock by institutional buyers such as mutual funds and ETFs in the last 13 weeks.
The Bellevue, Wash.-based company saw both earnings and sales growth rise last quarter. Earnings jumped 140% on a year-over-year basis, to $1.06 per share. Revenue shot up 148%, up from a 97% gain the prior quarter, to $2.28 billion.
See How IBD Helps You Make More Money In Stocks
While Expedia stock is not near an ideal buying range right now, see if it is able to form and break out of a proper chart pattern. like a double-bottom base or a rebound off of its 50-day or 10-week line.
Peers In Travel Group
Expedia stock holds the No. 1 rank among its peers in the Leisure-Travel Booking industry group. Booking Holdings and Airbnb are also among the top five ranked companies in the group.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD's proprietary RS Rating tracks technical performance by using a 1 (worst) to 99 (best) score that shows how a stock's price performance over the trailing 52 weeks matches up against that of all other stocks.
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