Wall Street expects a year-over-year increase in earnings on higher revenues when Expedia (EXPE) reports results for the quarter ended March 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 8. On the ot ...

As tourism continues to rebound, online travel booking and searching platforms may see more opportunities this 2025. Yet, competition stays high as market accessibility, technological advancements, and price sensitivity ease entry barriers. Despite this, it is still a challenge for many companies to emulate whatI have been working in the logistics sector for almost two decades. I have been into stock investing and macroeconomic analysis for almost a decade. Currently, I focus on ASEAN and NYSE/NASDAQ Stocks ...

Core Viewpoint - The article compares two Internet - Commerce stocks, Expedia (EXPE) and MercadoLibre (MELI), to determine which is more attractive to value investors [1]. Valuation Metrics - Both EXPE and MELI currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3]. - EXPE has a forward P/E ratio of 9.56, while MELI has a forward P/E of 38.76, suggesting that EXPE may be undervalued compared to MELI [5]. - The PEG ratio for EXPE is 0.52, indicating a favorable valuation when considering expected earnings growth, whereas MELI has a PEG ratio of 1.03 [5]. - EXPE's P/B ratio is 6.53, compared to MELI's P/B of 21.45, further supporting the notion that EXPE is more attractively valued [6]. Value Grades - Based on the valuation metrics, EXPE has a Value grade of B, while MELI has a Value grade of D, indicating that EXPE is currently the superior value option [6][7].

Core Viewpoint - Expedia's stock has experienced a decline of 6.6% over the past month, although it has outperformed the Zacks Retail-Wholesale sector and the Zacks Internet - Commerce industry, which saw declines of 7.6% and 9.4% respectively [1] Group 1: Financial Performance and Guidance - The company anticipates lower revenue growth of 3-5% for Q1 2025, compared to 8% growth in the same quarter last year [2] - The Zacks Consensus Estimate for Q1 2025 earnings is currently at 43 cents per share, a significant increase from 7 cents per share over the past 30 days, indicating year-over-year growth of 104.76% [3] - For 2025, Expedia expects revenue growth in the range of 4-6% year-over-year, with a consensus revenue estimate of $3.03 billion, reflecting a year-over-year increase of 4.87% [3] - The company has consistently beaten the Zacks Consensus Estimate for earnings in the past four quarters, with an average surprise of 45.86% [4] Group 2: Challenges and Competition - Expedia faces foreign exchange headwinds and lower bookings due to the Leap Year and Easter shift to April, along with a seasonal decline in travel demand impacting the broader market [5] - The company is under intense competitive pressure from rivals such as Booking Holdings, Tripadvisor, and Airbnb, which have expanded their offerings and improved their business models [6] Group 3: Strategic Initiatives - Expedia has planned several initiatives for 2025, including the integration of Generative AI technology to enhance personalization, optimize marketing, improve customer service, drive operational efficiency, and strengthen B2B partnerships [7] - The company is also partnering with Flex Pay to offer flexible payment options for cruise bookings in the U.S. and Canada, which is expected to increase bookings and conversion rates [8] Group 4: Investment Outlook - Despite strong travel demand and new initiatives, Expedia's weak Q1 2025 guidance, foreign exchange challenges, and intense competition suggest that holding the stock may be the best approach for now, as indicated by its Zacks Rank 3 (Hold) [9]

Core Insights - Expedia Group has partnered with Flex Pay to introduce flexible payment options for travelers booking cruises, allowing payments to be spread over 3 to 24 months [1][2][3] - The initiative aims to make travel more accessible and affordable, enabling travelers to manage their budgets effectively while enjoying cruise experiences [2][3] - Flex Pay has demonstrated success in increasing booking volume, conversion rates, and order value by 15-25% through its no-interest financing options [3] Company Overview - Expedia Group is a leading travel technology company that operates multiple brands including Expedia Cruises, Expedia.com, Travelocity.com, Orbitz.com, and Cheaptickets.com [1][2] - The company believes in the positive impact of travel and aims to provide memorable experiences while facilitating partner growth through innovative technology solutions [5] - Flex Pay, a Buy Now, Pay Later solution from Upgrade, has provided over $36 billion in responsible credit to more than 6 million customers since its inception in 2017 [4]

Investors looking for stocks in the Internet - Commerce sector might want to consider either Expedia (EXPE) or Coupang, Inc. (CPNG) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targe ...

Core Viewpoint - Expedia (EXPE) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1][2]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Expedia suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Performance of Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are rated highly based on earnings estimate revisions [9][10]. Specific Earnings Estimates for Expedia - For the fiscal year ending December 2025, Expedia is expected to earn $14.91 per share, reflecting a 23.1% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Expedia has increased by 11.7%, indicating a positive trend in earnings expectations [8].

Core Insights - Growth and momentum stocks present significant investment opportunities, but identifying the right ones at reasonable valuations is crucial [1] - Three highlighted stocks—Gambling.com, Palomar Holdings, and Expedia Group—exhibit strong fundamentals and are well-positioned for future growth [2] Gambling.com - Gambling.com is a leading performance marketing company in the online gambling sector, benefiting from the expanding online betting market due to increasing legalization in the US and Europe [3] - The company holds a Zacks Rank 2 (Buy) and is projected to achieve revenue growth of 16.4% this year and 36.5% next year, with earnings expected to surge by 74% this year and 15% next year [4] - The stock is attractively valued at 15.8x forward earnings, reflecting its strong growth potential and fundamentals [4][5] Palomar Holdings - Palomar Holdings operates in the insurance sector, characterized by predictable cash flows and essential products, making it a stable investment option [8] - The company has a Zacks Rank 1 (Strong Buy) and is expected to grow sales by 33.6% this year and 22.1% next year, with earnings projected to rise by 25% and 18.3%, respectively [9] - Palomar trades at 22.9x forward earnings, below the industry average, despite its superior growth prospects [9][10] Expedia Group - Expedia Group is a major player in the online travel industry, leveraging its scale and technology to drive bookings and revenue growth [12] - The company holds a Zacks Rank 2 (Buy) with sales expected to rise by 6% this year and 7.3% next year, while earnings are projected to grow by 18.2% annually over the next three to five years [13] - The stock trades at a forward earnings multiple of 16.8x, significantly below its 15-year median of 21.6x, indicating potential undervaluation [14] Conclusion - Gambling.com, Palomar Holdings, and Expedia Group represent compelling investment opportunities, combining growth, momentum, and value, making them suitable for investors seeking high-growth stocks at reasonable valuations [17]

POLAND - 2024/01/31: In this photo illustration an Expedia logo seen displayed on a smartphone. ... [+] (Photo Illustration by Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesExpedia (NASDAQ: EXPE) stock has risen approximately 33% since the start of 2024, surpassing the S&P 500, which has gained 27% during the same timeframe. In contrast, competitor Tripadvisor (NASDAQ: TRIP) has declined by 18%. What’s driving Expedia’s strong performance?Key factors beh ...

Group 1 - The article discusses two categories of investment strategies: Macro Trend Investments and Special Situations Investments, focusing on companies or sectors that benefit from favorable secular trends and specific events that can unlock value respectively [1] - Macro Trend Investments are characterized by a growth potential supported by attractive valuations, typically with a time horizon of 2-3 years [1] - Special Situations Investments are driven by specific catalysts that can lead to substantial value creation, generally with a time horizon of 6-12 months [1] Group 2 - The author expresses a beneficial long position in the shares of EXPE, indicating a personal investment interest in the company [2] - The article emphasizes the importance of understanding the reasons behind ownership of investments, aligning with the investment philosophy of Peter Lynch [1] - There is a disclaimer regarding the lack of financial advice and the necessity for individual due diligence, highlighting the independent nature of the analysis [3]