Strength Seen in Expedia (EXPE): Can Its 4.8% Jump Turn into More Strength?
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Expedia (EXPE) shares soared 4.8% in the last trading session to close at $158.01. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 8% gain over the past four weeks.
Shares of Expedia jumped after the Financial Times reported that Uber Technologies is mulling an acquisition of the company.
This online travel company is expected to post quarterly earnings of $6.08 per share in its upcoming report, which represents a year-over-year change of +12.4%. Revenues are expected to be $4.11 billion, up 4.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Expedia, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EXPE going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Expedia is part of the Zacks Internet - Commerce industry. Wayfair (W), another stock in the same industry, closed the last trading session 3.2% lower at $52.57. W has returned 7.1% in the past month.
Wayfair's consensus EPS estimate for the upcoming report has changed -1.7% over the past month to $0.15. Compared to the company's year-ago EPS, this represents a change of +215.4%. Wayfair currently boasts a Zacks Rank of #3 (Hold).
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
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