Expedia Group Inc. Stock Forecast:
The stock price target for Expedia Group Inc. according to an average of 21 analysts’ forecasts is USD 126.41 for the next year. The consensus among analysts is a “Buy” rating. Stock Target Advisor‘s evaluation of Expedia Group Inc. is “Bullish,” based on 9 positive indicators and 3 negative indicators. As of the most recent closing, Expedia Group Inc.’s stock price was USD 117.71. In the past week, the stock price has declined by 3.08%, increased by 25.53% over the past month, but decreased by 40.23% over the past year.
Analysts Coverage Change:
- Mizuho Securities maintains a Neutral rating for Expedia Group Inc. and raises the price target to $120 from $105 on the company’s stock.
- RBC maintains a Sector Perform rating and raises the price target to $120 from $115.
- Bank of America Merrill Lynch maintains a Buy rating and raises the price target to $150 from 143.
- Barclays maintains an Overweight rating and raises the price target to $140 from $129.
- Piper Jaffray Companies maintains an Overweight rating and raises the price target to $135 from $120.
Expedia Group Inc. News:
Expedia Group Inc. recently reported its fourth-quarter revenue which was $2.62 billion. This is lower than the analysts prediction of $2.71 billion. The company’s adjusted earnings per share was $1.26, which also fell short of the estimated figure of $1.77.
Expedia explained that the weather was a contributing factor to their lower than expected results, but that demand for their services was robust.
Positive Fundamentals:
Expedia Group Inc. stock has been performing well, delivering superior risk-adjusted returns compared to its sector peers over the past 12 months. The stock’s annual dividend returns have outperformed the sector peers over the past 5 years, making it a good option for investors seeking high income yields. Additionally, the company’s management has been delivering better returns on equity, invested capital, and assets in the most recent 4 quarters compared to its peers, putting it in the top quartile. The company also has positive total and free cash flows in the most recent four quarters. On top of these financial metrics, the stock has shown top quartile revenue growth and dividend growth in the previous 5 years compared to its sector.
Negative Fundamentals:
Expedia Group Inc. stock has some negative aspects that investors should be aware of before making a decision to invest. One of these negative aspects is the below median total returns that the company has shown over the past 5 years, meaning it has underperformed compared to its peers in terms of average annual total returns.
Another issue with the stock is its highly leveraged financial position, which puts the company in the bottom half compared to its sector peers in terms of debt to equity ratio. This high leverage may indicate that the company is trying to grow aggressively, but it is important for investors to stay updated on the company’s news and management statements to determine whether this is a positive or negative aspect.
Lastly, the stock is considered overpriced on a free cash flow basis, trading higher compared to its peers in terms of price to free cash flow ratio.
FA Score (Fundamental Analysis):
The fundamental analysis of Expedia Group Inc. is “Bullish” with a FA score of 7.5 out of 10, where 0 is very bearish and 10 is very bullish.
