Expedia Group-EXPE Up 14.7% in a Month: Should You Buy, Hold or Sell the Stock?

Core Viewpoint - Expedia Group (EXPE) has shown strong performance with a 14.7% increase in shares over the past month, outperforming both the Zacks Internet Commerce industry and the Retail-Wholesale sector [1] Group 1: Company Performance and Strategy - EXPE is benefiting from its strong positioning in the online travel booking space, with robust B2B, Brand Expedia, and advertising businesses driving momentum [1] - The company plans to integrate generative AI technology into its services and enhance its portfolio through expanding partnerships, which is expected to boost customer engagement [1] - The Zacks Consensus Estimate for third-quarter 2024 revenues is projected at $4.1 billion, indicating a year-over-year growth of 4.3% [4] Group 2: Partnerships and Market Position - EXPE's expanding network of partnerships is a key driver for its growth, including a recent partnership with Ryanair to offer budget-friendly flights [2] - The introduction of Stays by Alaska Vacation, in partnership with Alaska Airlines, enhances customer experience by personalizing travel options [3] - Collaborations with Wells Fargo and Mastercard to launch co-branded credit cards provide U.S. travelers with greater flexibility and rewards [3] - Partnerships with various tourism agencies in Australia aim to improve sustainable tourism and showcase local culture [4] Group 3: Market Outlook and Competition - The global travel and tourism market is projected to reach$ 916 billion in 2024 and $1.11 trillion by 2029, with a CAGR of 4% from 2024 to 2029, positioning EXPE to capitalize on this growth [2] - However, rising competition from major players like TripAdvisor, Airbnb, and Booking Holdings poses risks to EXPE's market position [6] - The Zacks Consensus Estimate for 2024 revenues is pegged at$ 13.6 billion, indicating a rise of 5.9% year over year [5] Group 4: Earnings Estimates - The Zacks Consensus Estimate for third-quarter 2024 earnings is $6.07 per share, reflecting a year-over-year growth of 12.2%, although it has been revised down by 8.2% in the past 30 days [8] - For 2024, the consensus mark for earnings is$ 11.53 per share, suggesting growth of 18.9% year over year, but this figure has also been revised downward by 2.5% [8]