Core Viewpoint - Mizuho raised its price target on Expedia Group Inc. to $270 from $240 while maintaining a Neutral rating due to better-than-expected third-quarter results and positive guidance [1][2] Group 1: Financial Performance - Expedia's gross bookings value (GBV) growth accelerated, with B2C increasing from 1% in Q2 to 6.6% in Q3, and B2B rising from 17% to 26% [1] - Management's outlook for fourth-quarter and 2025 margins has improved, projecting approximately two percentage points of EBITDA margin expansion this year and further improvement in 2026 [2] Group 2: Analyst Sentiment - Analysts acknowledged the company's strong fundamentals and progress but noted that the recent rally in shares has balanced the risk-reward profile, leading to a neutral stance despite continued growth prospects [2]

In the current session, the stock is trading at $272.70, after a 2.78% increase. Over the past month, Expedia Group Inc. (NASDAQ:EXPE) stock increased by 24.85%, and in the past year, by 49.62%. With performance like this, long-term shareholders are optimistic but others are more likely to look into the price-to-earnings ratio to see if the stock might be overvalued.Expedia Group P/E Ratio Analysis in Relation to Industry PeersThe P/E ratio is used by long-term shareholders to assess the company's market pe ...

Core Viewpoint - Investors in the Internet - Commerce sector should consider Expedia (EXPE) and MercadoLibre (MELI) for potential undervalued stock opportunities [1] Group 1: Zacks Rank and Earnings Outlook - Expedia has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MercadoLibre has a Zacks Rank of 4 (Sell) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that EXPE is likely experiencing a more favorable earnings outlook than MELI [3] Group 2: Valuation Metrics - EXPE has a forward P/E ratio of 18.50, significantly lower than MELI's forward P/E of 51.95 [5] - The PEG ratio for EXPE is 1.05, while MELI's PEG ratio is 1.50, indicating that EXPE may offer better value relative to its expected earnings growth [5] - EXPE's P/B ratio is 12.79 compared to MELI's P/B of 17.06, further supporting EXPE's more attractive valuation metrics [6] Group 3: Value Grades - EXPE has earned a Value grade of B, while MELI has a Value grade of D, reflecting the stronger valuation metrics and estimate revision activity for EXPE [6][7] - Overall, value investors are likely to conclude that EXPE is the superior option compared to MELI at this time [7]

Industry Overview - U.S. holiday sales are projected to exceed $1 trillion for the first time, with an expected growth of 3.7-4.2% year over year, translating to sales of $1.01-$1.02 trillion [3] - Last year's holiday sales rose 4.3% year over year to $976.1 billion [3] - An uncertain macroeconomic outlook, influenced by trade policies and the ongoing government shutdown, has negatively impacted consumer confidence [1] Retailer Recommendations - Five retailers are recommended for investment during the holiday season: Amazon.com Inc. (AMZN), Walmart Inc. (WMT), Tapestry Inc. (TPR), Dollar General Corp. (DG), and Expedia Group Inc. (EXPE), all carrying a favorable Zacks Rank 2 (Buy) [2] Amazon.com Inc. (AMZN) - Amazon is benefiting from growth in Amazon Web Services (AWS), which contributed $33.01 billion in Q3 2025, up 20.2% year over year [11] - Online sales and subscription revenues increased by 9.8% and 11.5% year over year, respectively, while advertising revenue climbed 23.5% [12] - Expected revenue and earnings growth rates for next year are 11.2% and 9.9%, respectively, with a 2.6% improvement in earnings estimates over the last 30 days [14] Walmart Inc. (WMT) - Walmart's diversified business model and strong omnichannel strategy have boosted traffic across physical and digital platforms [15] - The company has enhanced its delivery capabilities, including partnerships and new services, leading to steady grocery market share gains [16] - Expected revenue and earnings growth rates for next year are 4.4% and 12.5%, respectively, with a 0.7% improvement in earnings estimates over the last 60 days [17] Tapestry Inc. (TPR) - Tapestry is experiencing growth driven by strong engagement from Gen Z and millennials, with significant expansion in North America, Europe, and Greater China [18] - The company's international business saw a 10% year-over-year growth in Europe and an 18% surge in Greater China [19] - Expected revenue and earnings growth rates for the current year are 3.4% and 9.5%, respectively, with a 1.6% improvement in earnings estimates over the last seven days [20] Dollar General Corp. (DG) - Dollar General's growth is supported by disciplined cost management and a customer-centric model, with a focus on value pricing and supply-chain optimization [21] - The company is expanding its omnichannel presence through partnerships, which is driving higher store traffic and basket sizes [22] - Expected revenue and earnings growth rates for next year are 4.2% and 8.4%, respectively, with a 0.8% improvement in earnings estimates over the last 60 days [24] Expedia Group Inc. (EXPE) - Expedia benefits from a strong platform model that enhances customer insights and strengthens supplier relationships, driving revenue growth [25] - The company's diverse brand portfolio allows it to cater to a wide range of global traveler needs, boosting traffic and bookings [26] - Expected revenue and earnings growth rates for next year are 2% and 17.8%, respectively, with a 1.2% improvement in earnings estimates over the last 30 days [26]

Core Viewpoint - Investors are evaluating the value opportunities between Expedia (EXPE) and MercadoLibre (MELI), with current analysis suggesting that EXPE presents a better value option due to its stronger earnings outlook and favorable valuation metrics [1][7]. Valuation Metrics - EXPE has a forward P/E ratio of 18.02, significantly lower than MELI's forward P/E of 52.36, indicating that EXPE may be undervalued relative to MELI [5]. - The PEG ratio for EXPE is 1.08, while MELI's PEG ratio is 1.51, suggesting that EXPE's expected earnings growth is more favorable compared to its price [5]. - EXPE's P/B ratio stands at 12.32, compared to MELI's P/B of 17.19, further supporting the notion that EXPE is a more attractive investment based on traditional valuation metrics [6]. Earnings Outlook - EXPE holds a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while MELI has a Zacks Rank of 4 (Sell), reflecting a less favorable earnings outlook [3]. - The solid earnings outlook for EXPE, combined with its favorable valuation figures, positions it as the superior value option in the current market [7].

Core Viewpoint - Expedia's stock has surged following strong quarterly results, reflecting improved travel demand and positive investor sentiment [1][6]. Financial Performance - Revenue for the third quarter increased by 9% year-over-year, reaching just over $4.4 billion, surpassing Wall Street's estimate of $4.3 billion [3]. - Earnings per share were reported at $7.57, which is 23% higher than the previous year and 9% above the expected $6.95 [3]. Growth Metrics - The company experienced an 11% year-over-year growth in booked room nights, marking the fastest growth rate in over three years, driven by business-to-business sales [4]. Guidance Update - Management raised the full-year 2025 revenue growth guidance to 6%-7%, up from the previous forecast of 3%-5% [5]. - Gross bookings for the year are now expected to increase by 7%, compared to the earlier prediction of 3%-5% [5]. Market Reaction - The positive quarterly performance and revised guidance have led to a significant increase in stock price, with a 21% rise since November 5 [1][2].

Market Overview - The week experienced significant market fluctuations, with major indices pushed into the red due to debates over data centers and excessive tech stock valuations [1] - The S&P 500 declined by 1.6%, the Nasdaq Composite fell by 3%, the Dow Jones Industrial Average decreased by 1.2%, and the Russell 2000 was down by 1.9% over the week [7] Gold and Volatility - Gold prices soared, closing above $4000, contributing to a modest gain of 0.3% for the week [2] - The Vix CBOE Volatility Index closed at 19, indicating a 9% increase this week, suggesting relative calm despite market volatility [2] Housing Market Insights - The housing market showed mixed signals, with a decline in house sales but an increase in median prices in 77% of metro areas [3] - Economic uncertainty is leading to a shift in population and jobs towards the southern regions of the U.S., despite rising job cuts [4] Labor Market Trends - Job cuts in the U.S. reached 153,074 in October, marking a 175% increase from the previous year and a 183% increase from the month prior [4] - Major companies such as Amazon, UPS, General Motors, and Target have conducted layoffs, reflecting a broader trend in the labor market [5] Airline Industry Adjustments - Airlines are cutting flights by 10% at 40 airports to manage reduced personnel and alleviate pressure on air traffic controllers [6]

Core Insights - Ten large-cap stocks showed significant performance gains last week, driven by better-than-expected financial results and raised guidance for fiscal year 2025 [1] Company Performance Summary - **Globus Medical, Inc. (NYSE:GMED)**: Gained 39.79% after reporting better-than-expected Q3 results and raising FY2025 guidance [1] - **Sandisk Corporation (NASDAQ:SNDK)**: Gained 13.77% following better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Lumentum Holdings Inc. (NASDAQ:LITE)**: Gained 15.30% after reporting better-than-expected Q1 results and issuing Q2 guidance above estimates [1] - **Datadog, Inc. (NASDAQ:DDOG)**: Gained 16.91% after better-than-expected Q3 results and raising FY2025 guidance above estimates [1] - **Expedia Group, Inc. (NASDAQ:EXPE)**: Gained 18.14% after beating Q3 earnings estimates and raising FY2025 guidance [1] - **Coherent Corp. (NYSE:COHR)**: Gained 15.82% after better-than-expected Q1 results and issuing Q2 sales guidance above estimates [1] - **Penumbra, Inc. (NYSE:PEN)**: Gained 19.58% after better-than-expected Q3 results and raising FY25 sales guidance above estimates [1] - **Teva Pharmaceutical Industries Limited (NYSE:TEVA)**: Gained 15.13% after beating Q3 earnings and revenue estimates and raising full-year EPS guidance [1] - **Madrigal Pharmaceuticals, Inc. (MDGL)**: Gained 19.90% after reporting better-than-expected Q3 sales results [1] - **DuPont de Nemours, Inc. (NYSE:DD)**: Gained 15.80% after beating Q3 earnings and revenue estimates [1]

Market Performance - U.S. equity markets ended in negative territory on November 7, 2025, with the Dow Jones Industrial Average (DJIA) falling 0.8% to 46,912.30, the S&P 500 (SPX) down 1.1% to 6,720.32, and the Nasdaq Composite (IXIC) dropping 1.9% to 23,053.99 [1][2] - This marked the first weekly loss for the S&P 500 and DJIA in a month, while the Nasdaq recorded its worst weekly performance since March [3] - The CBOE Volatility Index (VIX) rose 8.3% to 19.50, indicating increased market uncertainty [3] Key Market Drivers - Concerns over AI stock valuations led to profit-taking among investors, particularly affecting major technology companies [4] - The ongoing U.S. government shutdown, now in its 38th day, has diminished market confidence and resulted in a lack of critical economic data [5] - Weak labor market data revealed 153,074 job cuts in October, a 183% increase from the previous month, contributing to declining consumer sentiment [6] Major Stock News and Movements - Nvidia (NVDA) saw a decline of 2.2% to 3.8% due to AI valuation concerns, while Broadcom (AVGO) fell 4.2% to 4.6% [8] - Salesforce Inc. (CRM) dropped 5.3%, and Microsoft (MSFT) and Amazon (AMZN) fell 2% and 2.9% respectively [8] - Expedia Group (EXPE) surged over 17% after exceeding profit expectations and raising annual revenue guidance [8] Upcoming Market Events - Key economic releases and Federal Reserve activities are anticipated next week, including U.S. inflation data and initial jobless claims [9] - Several Federal Reserve governors are scheduled to speak, which may provide insights into the Fed's economic outlook [9] - Notable companies set to report earnings next week include Tyson Foods (TSN), Beyond Meat (BYND), and Walt Disney (DIS) [9]

Core Insights - Expedia was the best-performing stock in the S&P 500, surging over 17% after reporting better-than-expected earnings driven by strong domestic demand [1][7][8] - Take-Two Interactive Software's stock fell 8% due to the delay in the launch of "Grand Theft Auto VI," overshadowing its stronger-than-expected earnings [4][8] - Block's shares dropped nearly 8% after missing third-quarter sales and adjusted profit forecasts, despite growth from its Cash App platform [5] - Tesla's stock decreased close to 4% following the approval of a significant pay package for CEO Elon Musk, which could be worth $1 trillion based on performance goals [6] - Akamai Technologies saw its shares rise nearly 15% after reporting better-than-expected earnings and boosting its outlook, driven by strong demand for its security and cloud services [9] - Solventum, a healthcare company spun off from 3M, exceeded expectations with its quarterly sales and adjusted profit, leading to an 8% increase in its shares [10] Market Overview - Major U.S. equity indexes finished mixed, with the Dow up 0.2% and S&P 500 up 0.1%, while the Nasdaq dropped 0.2%, marking its worst week since early April [2][3] - The Michigan Consumer Sentiment Index fell to its lowest level since June 2022, indicating negative impacts from the U.S. government shutdown on economic perceptions [2]