Seattle-based Expedia Group, Inc. (EXPE) is a leading global travel technology company, empowering business and leisure travelers with innovative tools and information to efficiently research, plan, book, and experience travel. With a market cap of $15.5 billion, the company operates an extensive portfolio of travel brands, including Expedia, Hotels.com, Vrbo, Orbitz, Travelocity, Hotwire, Wotif, ebookers, CheapTickets, Expedia Partner Solutions, CarRentals.com, and Expedia Cruises.
Shares of the travel tech company have underperformed the broader market over the last year. EXPE has gained 19.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.5%. In 2024, Expedia Group stock has tumbled 24.9%, notably lagging SPX's 11.2%returns on a YTD basis.
Narrowing the focus, EXPE lagged behind the ETFMG Travel Tech ETF’s (AWAY) 23.2% return over the past 52 weeks. However, the stock's double-digit YTD loss is far behind the exchange-traded fund's 5.9% return over the same time frame.
EXPE’s weak price action relative to the broader indexes this year stems from a revenue warning due to declining airfares post-pandemic. The CEO’s resignation and a shift in Vrbo’s platform compounded the challenges. Despite the holiday uptick, concerns over summer bookings slowdown and modest growth forecasts prompted cautious investors, resulting in a double-digit decline.
For the current fiscal year, ending in December, analysts expect EXPE to report EPS growth of 25.7% year over year to $9.35. The company's earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
In the last reported quarter, its top and bottom lines surpassed Wall Street’s projections, driven by strong performance in the B2B, Brand Expedia, and advertising sectors, supported by robust lodging offerings and expanding international presence.
Among the 28 analysts covering EXPE stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, one “Moderate Buy,” and 19 “Hold.”
This configuration is slightly less bullish than three months before, with 10 analysts suggesting a "Strong Buy."
On May 15, BMO Capital analyst Brian Pitz maintained a “Buy” rating on Expedia, with a price target of $145, which implies an upside potential of 27.2% from the stock’s current price levels.
The mean price target of $146.62 indicates an upside potential of 28.6% from EXPE’s current price levels. The Street-high price target of $190 suggests the stock could rally as much as 66.7%.
On the date of publication, Rashmi Kumari 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.
