Home Stock Is it too late to buy Expedia stock as shares spike on Q3 beat?

Is it too late to buy Expedia stock as shares spike on Q3 beat?


On Friday, Expedia Group Inc. (NASDAQ:EXPE) shares rallied more than 15% after reporting its fiscal third-quarter results. The company announced its most recent quarterly results Thursday after markets closed, beating the consensus for analyst expectations on revenue and earnings.

Expedia posted FQ3 non-GAAP earnings per share of $3.53, beating the average form analyst estimates of $1.68. On the other hand, its GAAP EPS of $2.26 outperformed the average Street forecast of $1.07, while revenue for the quarter increased by more than 97% from the same period last year to $2.96 billion, exceeding expectations by $240 million.

Expedia expects the recovery to continue in Q4 as more countries reopen for international travellers, thus boosting its growth outlook.

Expedia’s exciting recovery

From a valuation perspective, Expedia shares trade at a reasonable forward P/E ratio of about 23.98, making it an interesting opportunity for value investors.

On the other hand, although analysts expect earnings to decline by more than 600% this year, they also forecast a significant recovery of more than 885% next year.

Therefore, the stock could be a compelling opportunity for bargain hunters.

Source – TradingView

Technically, Expedia shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock has spiked towards the trendline resistance, pushing it closer to overbought conditions.

Therefore, given this year’s projected earnings decline, short-term investors could target potential pullbacks at about $172.17, or lower at $160.41, while $187.96 and $199.38 are crucial resistance levels.

Should you bet long?

In summary, although Expedia shares seem perfectly positioned for a short-term pullback, the stock trades at exciting valuation multiples whilst its recovery appears to be on track after its FQ3 beat.

Therefore, long-term investors willing to overlook the short-term turbulence could still buy the stock.

The post Is it too late to buy Expedia stock as shares spike on Q3 beat? appeared first on Invezz.

You may also like