Core Insights - Expedia Group has partnered with Flex Pay to introduce flexible payment options for travelers booking cruises, allowing payments to be spread over 3 to 24 months [1][2][3] - The initiative aims to make travel more accessible and affordable, enabling travelers to manage their budgets effectively while enjoying cruise experiences [2][3] - Flex Pay has demonstrated success in increasing booking volume, conversion rates, and order value by 15-25% through its no-interest financing options [3] Company Overview - Expedia Group is a leading travel technology company that operates multiple brands including Expedia Cruises, Expedia.com, Travelocity.com, Orbitz.com, and Cheaptickets.com [1][2] - The company believes in the positive impact of travel and aims to provide memorable experiences while facilitating partner growth through innovative technology solutions [5] - Flex Pay, a Buy Now, Pay Later solution from Upgrade, has provided over $36 billion in responsible credit to more than 6 million customers since its inception in 2017 [4]

Core Viewpoint - Investors in the Internet - Commerce sector should consider Expedia (EXPE) and Coupang, Inc. (CPNG) for potential value opportunities, with a current preference for EXPE due to its stronger valuation metrics and improving earnings outlook [1]. Valuation Metrics - Expedia has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Coupang, which has a Zacks Rank of 3 (Hold) [3]. - The forward P/E ratio for EXPE is 12.98, significantly lower than CPNG's forward P/E of 64.94, suggesting that EXPE is undervalued relative to its earnings potential [5]. - EXPE's PEG ratio is 0.71, while CPNG's PEG ratio is 64.29, further indicating that EXPE is a better value option when considering expected earnings growth [5]. - The P/B ratio for EXPE is 8.91, compared to CPNG's P/B of 10.44, reinforcing the notion that EXPE offers a more attractive valuation [6]. - Based on these metrics, EXPE has earned a Value grade of B, while CPNG has a Value grade of D, highlighting the relative undervaluation of EXPE [6]. Earnings Outlook - EXPE is currently experiencing an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, positioning it as the superior value option at this time [7].

Core Viewpoint - Expedia (EXPE) has received an upgrade to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1][2]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Expedia suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5][10]. Performance of Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains a balanced distribution of 'buy' and 'sell' ratings, ensuring that only the top 20% of stocks are rated highly based on earnings estimate revisions [9][10]. Specific Earnings Estimates for Expedia - For the fiscal year ending December 2025, Expedia is expected to earn $14.91 per share, reflecting a 23.1% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Expedia has increased by 11.7%, indicating a positive trend in earnings expectations [8].

Core Insights - Growth and momentum stocks present significant investment opportunities, but identifying the right ones at reasonable valuations is crucial [1] - Three highlighted stocks—Gambling.com, Palomar Holdings, and Expedia Group—exhibit strong fundamentals and are well-positioned for future growth [2] Gambling.com - Gambling.com is a leading performance marketing company in the online gambling sector, benefiting from the expanding online betting market due to increasing legalization in the US and Europe [3] - The company holds a Zacks Rank 2 (Buy) and is projected to achieve revenue growth of 16.4% this year and 36.5% next year, with earnings expected to surge by 74% this year and 15% next year [4] - The stock is attractively valued at 15.8x forward earnings, reflecting its strong growth potential and fundamentals [4][5] Palomar Holdings - Palomar Holdings operates in the insurance sector, characterized by predictable cash flows and essential products, making it a stable investment option [8] - The company has a Zacks Rank 1 (Strong Buy) and is expected to grow sales by 33.6% this year and 22.1% next year, with earnings projected to rise by 25% and 18.3%, respectively [9] - Palomar trades at 22.9x forward earnings, below the industry average, despite its superior growth prospects [9][10] Expedia Group - Expedia Group is a major player in the online travel industry, leveraging its scale and technology to drive bookings and revenue growth [12] - The company holds a Zacks Rank 2 (Buy) with sales expected to rise by 6% this year and 7.3% next year, while earnings are projected to grow by 18.2% annually over the next three to five years [13] - The stock trades at a forward earnings multiple of 16.8x, significantly below its 15-year median of 21.6x, indicating potential undervaluation [14] Conclusion - Gambling.com, Palomar Holdings, and Expedia Group represent compelling investment opportunities, combining growth, momentum, and value, making them suitable for investors seeking high-growth stocks at reasonable valuations [17]

Core Insights - Expedia's stock has increased approximately 33% since the beginning of 2024, outperforming the S&P 500's 27% gain, while competitor Tripadvisor has seen an 18% decline [1] - Key drivers of Expedia's growth include a rebound in travel demand, particularly in the U.S. and Asia-Pacific regions, and a strategic expansion into the B2B sector, which now accounts for 27% of total bookings [1] - The reinstatement of a quarterly dividend at $0.40 per share has positively impacted investor sentiment and stock price [1] - Expedia's Q4 financial results exceeded expectations, with revenue and earnings growth, and the company forecasts 4-6% growth in gross bookings and revenue for 2025 [1] Financial Performance - For the full year 2024, Expedia reported revenue of $13.7 billion, a 7% year-over-year increase, with total gross bookings also rising 7% to $110.0 billion [2] - B2B revenue surged 21% year-over-year to $4.1 billion, while B2C revenue grew modestly to $9.3 billion [2] - The diluted earnings per share (EPS) increased by 69% to $8.95, and adjusted EPS rose 25% year-over-year to $12.11 [2] - EBITDA climbed 9% year-over-year to $3 billion for FY 2024 [2] Stock Volatility and Projections - EXPE stock has shown significant volatility over the past four years, with annual returns of 36% in 2021, -52% in 2022, 73% in 2023, and 23% in 2024 [3] - Revenue for fiscal year 2025 is projected to reach $14.5 billion, reflecting a 6% year-over-year increase, with a revised valuation of approximately $205 per share based on an expected GAAP EPS of $11.24 [4] Strategic Initiatives - Expedia continues to benefit from strong global travel demand and improved profit margins in both B2B and B2C segments [5] - The company is focused on strategic technology investments and customer loyalty initiatives, including AI integration [5] - Shareholder value is being enhanced through targeted share buybacks and the "One Key" loyalty program, which aims to boost customer retention and repeat business [5]

Group 1 - The article discusses two categories of investment strategies: Macro Trend Investments and Special Situations Investments, focusing on companies or sectors that benefit from favorable secular trends and specific events that can unlock value respectively [1] - Macro Trend Investments are characterized by a growth potential supported by attractive valuations, typically with a time horizon of 2-3 years [1] - Special Situations Investments are driven by specific catalysts that can lead to substantial value creation, generally with a time horizon of 6-12 months [1] Group 2 - The author expresses a beneficial long position in the shares of EXPE, indicating a personal investment interest in the company [2] - The article emphasizes the importance of understanding the reasons behind ownership of investments, aligning with the investment philosophy of Peter Lynch [1] - There is a disclaimer regarding the lack of financial advice and the necessity for individual due diligence, highlighting the independent nature of the analysis [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Expedia (EXPE) - Expedia currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for potential outperformance in the market [3] - Over the past week, EXPE shares increased by 18.38%, significantly outperforming the Zacks Internet - Commerce industry, which rose by only 0.27% [5] - In the last quarter, EXPE shares rose by 11.37%, and over the past year, they have increased by 46.24%, while the S&P 500 only moved 1.46% and 22.28% respectively [6] - The average 20-day trading volume for EXPE is 2,426,886 shares, indicating a bullish trend as the stock is rising with above-average volume [7] Earnings Outlook - In the past two months, 5 earnings estimates for EXPE have been revised upwards, while 3 have been revised downwards, leading to an increase in the consensus estimate from $13.99 to $14.91 [9] - For the next fiscal year, there have been 2 upward revisions and 3 downward revisions in earnings estimates [9] Conclusion - Given the strong momentum indicators and positive earnings outlook, EXPE is classified as a 2 (Buy) stock with a Momentum Score of A, making it a potential candidate for near-term investment [11]

Key TakeawaysThe S&P 500 slipped 1.0% on Friday, Feb. 7, as the latest labor market data revealed that the U.S. economy added fewer jobs than expected in January.Concerns about the trajectory of mortgage rates weighed on shares of D.R. Horton and other homebuilders.Expedia shares took off after the travel website topped quarterly forecasts, benefitting from strong holiday travel demand. Major U.S. equities indexes moved lower to close out the trading week as the January jobs report showed slower-than-expect ...

Expedia Group (EXPE) reported fourth-quarter 2024 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate by 15.46%. The figure increased 38.95% year over year.EXPE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the earnings surprise being 45.86%, on average.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $3.18 billion rose 10% year over year. The figure lagged the Zacks Consensus Estimate by 3.52%.B2B revenues inc ...

Travel technology company Expedia Group Inc. EXPE reported better-than-expected fourth-quarter earnings. The following are comments by different analysts on the company’s performance.BofA Securities analyst Justin Post reiterated a Buy rating on the shares and raised the price forecast from $221.00 to $250.00.In the fourth quarter, bookings reached $24.4 billion, surpassing the Street’s estimate of $23.2 billion, with continued growth in Vrbo bookings and a slight rebound at Hotels.com. Revenue of $3.18 bil ...