$184.92
arrow_drop_up0.76%Is EXPE a Buy or Sell based on AI Analysis?
Fundamental Analysis
Expedia Group Inc (EXPE) has a strong revenue growth rate of 10.05% and a net margin of 6.21%, indicating efficient cost management. The company also boasts a healthy return on equity of 21.12%, highlighting its ability to generate profits from shareholders' equity. Additionally, Expedia Group has a current ratio of 0.78, suggesting that it may have some liquidity challenges in meeting short-term obligations. However, with a free cash flow margin of 14.36%, the company has sufficient cash flow to cover its operations and potential investments. Lastly, Expedia Group's price-to-book ratio of 12.16 reflects that the stock may be trading at a premium relative to its book value, which could be a concern for value investors. Despite facing liquidity challenges due to its current ratio of 0.78, Expedia Group Inc (EXPE) has shown consistent revenue growth of 10.05% and a strong net margin of 6.21%. The company's return on assets of 4.24% demonstrates its efficiency in using its assets to generate profits, while the price-to-book ratio of 12.16 suggests that the stock may be overvalued in relation to its book value. Additionally, Expedia Group's price-to-free cash flow ratio of 9.61 indicates that investors may be paying a premium for the company's cash flow. Overall, while the company's fundamental analysis reveals some strengths and weaknesses, investors may want to consider these factors when making investment decisions in Expedia Group.
Positive Development
Despite a moderating travel demand, Expedia Group Inc. is actively diversifying its revenue streams, which could potentially boost its financial stability. The company has recently collaborated with Grammy-winning artist Anderson .Paak, creating a travel guide for the 2024 New Orleans Jazz & Heritage Festival. This partnership could help the company tap into a new market segment and increase its brand recognition. Expedia Group Inc. has been actively restructuring its workforce, which could potentially lead to cost savings and a more efficient business model.
Negative Development
The company is undergoing a restructuring process, which could lead to short-term disruption and potential loss of talent. The CEO transition could lead to potential instability and uncertainty within the company. The company's stock underperformed competitors on several occasions, indicating potential investor skepticism.
Technical Analysis
Expedia Group Inc (EXPE) currently has a technical rating of NEUTRAL, indicating a balanced outlook for its stock performance. The stock price is currently at $135.52, with a delta price of -$1.32 and a delta price percent decrease of -0.96462. The company's technical indicators for the month include an ATR (Average True Range) buy signal and multiple hold signals such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence). The stock has shown a slight decline of -0.57% in price over the past seven days, but it has seen a positive 22.95% increase in the past six months. Moreover, the company's technical analysis also reveals a trailing PE ratio of 25.77 and a beta of 1.9, suggesting that it may be more volatile than the market average. With 16.5K employees and a market cap of $17.72B, Expedia Group Inc operates within the Consumer Cyclical sector. Additionally, the stock has a fifty-two-week price change percent of 24.85%, indicating strong performance over the past year. Overall, the neutral technical rating, along with the various indicators and metrics, provide investors with valuable insights into the stock's current performance and potential future trends.
Conclusion and recommendation
Based on the data provided, Expedia Group Inc. (EXPE) appears to be a stock with solid fundamentals and a neutral forecast. With a current price of $135.52 and a market cap of $17.72B, the company has shown resilience despite recent fluctuations in the market. Expedia Group Inc. also boasts impressive financial metrics such as a PE ratio of 25.52, return on equity of 21.12%, and a healthy free cash flow margin of 14.36%. However, the company's revenue growth has decreased slightly in the past three months, and its year-to-date price change percentage stands at -8.91%. The technical rating for Expedia Group Inc. is currently neutral, indicating a potential lack of momentum in the short term. In conclusion, while Expedia Group Inc. has shown stability and profitability in its operations, investors may want to proceed with caution due to the recent decline in revenue growth and price performance. It is recommended to closely monitor the company's financials and market dynamics before making any investment decisions. Additionally, keeping an eye on analyst forecasts and industry trends will provide valuable insights into the future prospects of Expedia Group Inc. Overall, with careful analysis and a focus on key performance indicators, investors can make informed decisions regarding their investment in EXPE.