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Seattle, Washington-based Expedia Group, Inc. (EXPE) operates as an online travel company that provides travel products and services to leisure and corporate travelers. Valued at $20.8 billion by market cap, the company facilitates memorable experiences for travelers through its family of brands including Expedia, Hotels.com, Expedia Partner Solutions, Vrbo, Trivago, Travelocity, Hotwire, Wotif, ebookers, CheapTickets, Expedia Group Media Solutions, CarRentals.com, and Expedia Cruises.
Shares of this leading online travel company have outperformed the broader market considerably over the past year. EXPE has gained 42.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 31.1%. In 2024 alone, EXPE’s stock rose 6.1%, compared to the SPX’s 19.8% rise on a YTD basis.
Zooming in further, EXPE’s outperformance looks more pronounced compared to Invesco Dynamic Leisure and Entertainment ETF (PEJ). The exchange-traded fund has gained about 30.7% over the past year. However, the ETF’s 18% gains on a YTD basis outshine the stock’s returns over the same time frame.
On Oct. 17, EXPE shares rose more than 4% following a Financial Times report indicating that Uber Technologies, Inc. (UBER) was considering a potential acquisition of the company.
On Aug. 8, EXPE reported its Q2 results and its shares closed up more than 10% in the following trading session. Its revenue of $3.6 billion was better than the consensus of $3.5 billion. Its adjusted EPS increased 21.5% year over year to $3.51. Moreover, increase in booked room nights and a rise in gross bookings have boosted its performance.
For the current fiscal year, ending in December, analysts expect EXPE’s EPS to grow 20.8% to $8.99 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 31 analysts covering EXPE stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and 22 “Holds.”
This configuration is less bullish than two months ago, with nine analysts suggesting a “Strong Buy.”
On Oct. 29, DBS analyst Amanda Tan maintained a “Hold” rating on EXPE with a price target of $135.
While EXPE currently trades above its mean price target of $150.72, the Street-high price target of $200 suggests an upside potential of 24.1%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
