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Seattle-based Expedia Group, Inc. (EXPE), with a market cap of $19.6 billion, is a leading online travel company offering a wide range of travel products and services to both leisure and corporate travelers.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Expedia Group fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the travel services industry. With a strong portfolio of well-known travel booking sites, including Expedia.com, Hotels.com, and Vrbo, the company has an extensive global reach.
Despite its strengths, the stock currently trades 7.6% below its 52-week high of $160.05, which it touched on Feb. 2. EXPE stock has soared 15.4% over the past three months, outperforming the S&P 500 Index’s ($SPX) 5.2% gains during the same time frame.
In the longer term, shares of the travel company have dipped 2.6% on a YTD basis but jumped 46.6% over the past 52 weeks, contrasting with SPX’s 20.2% rise on a YTD basis and 32.7% gain over the past year.
Despite recent volatility, EXPE has been trading above its 50-day and 200-moving moving averages since mid-September, indicating a recent bullish trend.
On Aug. 8, Expedia Group announced its Q2 earnings report, leading to a more than 10% surge in its stock price the following trading session. The company exceeded analyst expectations with a 10% annual increase in booked room nights and a 6% rise in gross bookings to $28.8 billion. Revenue grew 6% annually to $3.6 billion, surpassing estimates, while adjusted earnings per share jumped 21% year over year to $3.51.
Despite modest third-quarter guidance projecting only 3% to 5% revenue growth due to shifting consumer preferences toward cheaper accommodations, the strong earnings performance instilled confidence in investors about Expedia's long-term growth potential.
Expedia Group’s top competitor, Booking Holdings Inc. (BKNG), has significantly underperformed EXPE over the past year. EXPE’s robust returns over the past year exceed BKNG’s 36.4% returns over the same time period. However, shares of BKNG surged 17.8% in 2024, surpassing EXPE.
Analysts remain reasonably bullish about EXPE’s prospects. The stock has a consensus “Moderate Buy” rating from the 30 analysts covering it, and it currently trades above its mean target of $146.39.
On the date of publication, Kritika Sarmah 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.
