Expedia (EXPE) Upgraded to Buy: Here's What You Should Know

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].