hit a new 52-week high of $69.76 on Dec 31, eventually closing at
The closing share price represents a moderate one-year return
of 10.1%. The average trading volume for the last three months
aggregated 2,856K shares. Expedia, which currently carries
a Zacks Rank #3 (Hold), has a market cap of $9.08 billion with
long-term earnings growth expectations of 13.0%.
Growth in the online travel booking industry, the ongoing
successful transition of TripAdvisor to the metasearch model,
product enhancements, international expansion and
better-than-expected third-quarter results are some of the
catalysts driving the stock.
Expedia beat the Zacks Consensus Estimate on both lines in the
third quarter of fiscal 2013. Earnings soared 124.1% sequentially
and 0.3% year over year to $1.26 per share. The increase in
earnings was primarily due to higher gross margins and solid
Revenues rose 16.3% sequentially and 15.4% year over year to
$396.5 million. The strong growth in revenues was primarily
driven by healthy growth rates across most brands including
Expedia, Trivago and Hotels.com.
Also, the company's expanding customer base helped it to
report gross bookings of $10.44 billion, up 3.1% sequentially and
15.2% year over year in the recently concluded quarter.
Over the last 30 days, earnings estimates for Expedia remained
unchanged for the current quarter as well as for fiscal 2013. The
Zacks Consensus Estimate for fourth-quarter 2013 is pegged at 75
cents per share. Earnings estimates for 2013 and 2014 remained
unchanged at $2.44 and $3.29, respectively.
Other Stocks to Consider
Other better-ranked stocks that are performing well at the
current levels include
Bitauto Holdings Limited
). While Bitauto Holdings and RetailMeNot sport a Zacks Rank #1
(Strong Buy), Priceline.com carries a Zacks Rank #2 (Buy).
BITAUTO HOLDNGS (BITA): Free Stock Analysis
EXPEDIA INC (EXPE): Free Stock Analysis
PRICELINE.COM (PCLN): Free Stock Analysis
RETAILMENOT INC (SALE): Free Stock Analysis
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