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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 $22.8 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, and more.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EXPE perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the travel services industry. EXPE's strength lies in its diverse brand portfolio, allowing them to target various customer segments and regions. Its market presence is bolstered by its global audience and broad selection of travel products, making it a leading full-service online travel brand worldwide. Their investment in technology and platform capabilities has driven product improvements and increased efficiency in marketing investments.
Despite its notable strength, EXPE slipped 16.5% from its 52-week high of $207.73, achieved on Feb. 10. Over the past three months, EXPE stock has declined 8.8%, underperforming the Dow Jones Industrials Average’s ($DOWI) 2% losses during the same time frame.
In the longer term, shares of EXPE dipped 6.9% on a YTD basis, underperforming DOWI’s YTD marginal losses. However, the stock climbed 26.9% over the past 52 weeks, outperforming DOWI’s 8.1% returns over the last year.
To confirm the bullish trend, EXPE has been trading above its 200-day moving average since mid-September, 2024. However, the stock is trading below its 50-day moving average since early March.
EXPE has surpassed expectations due to a steady annual increase in room nights booked, showing potential for increased profitability through the development of new products and features. The company's high gross margin of 88.6% is a result of its superior platform functionality and operational efficiency. Overall, EXPE has demonstrated strong execution and benefited from robust travel demand, leading to its outperformance in the market.
On Feb. 6, EXPE reported its Q4 results, and its shares closed up more than 17% in the following trading session. Its adjusted EPS of $2.39 beat Wall Street expectations of $2.07. The company’s revenue was $3.2 billion, topping Wall Street forecasts of $3.1 billion.
In the competitive arena of travel services, Tripadvisor, Inc. (TRIP) has taken the lead over EXPE, showing resilience with 2.2% gains on a YTD basis. However, TRIP shares lagged behind the stock plummeting 46.1% over the past 52 weeks.
Wall Street analysts are moderately bullish on EXPE’s prospects. The stock has a consensus “Moderate Buy” rating from the 33 analysts covering it, and the mean price target of $208.47 suggests a potential upside of 20.2% from current price levels.
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.
