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Expedia, IBD Stock Of The Day, Benefits As Travel Restrictions Ease

Expedia Group Inc

Expedia Group Inc

EXPE


$4.79


2.84%


Expedia, IBD Stock Of The Day, Benefits As Travel Restrictions Ease12%

IBD Stock Analysis

  • Shares have formed a cup-with-handle base with entry point of 175.47
  • Stock has low Composite Rating of 57 out of a best-possible score of 99
  • But shares have Relative Strength Rating of 82, indicating stronger moves
Expedia, IBD Stock Of The Day, Benefits As Travel Restrictions Ease

* Not real-time data. All data shown was captured at
2:20PM EDT on
10/15/2021.

Expedia Group (EXPE) is the IBD Stock Of The Day as the online travel giant is benefiting from the lifting of Covid-19 travel restrictions and barriers. Expedia stock is near a buy point.




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The White House said Friday it would allow international travelers who are fully vaccinated against Covid-19 into the U.S. starting Nov. 8. The move lifts a ban on visitors from the European Union, the U.K. and other countries.

Expedia stock climbed 2.8% to 173.68 during afternoon trading on the stock market today. It has formed a cup-with-handle base with a buy point of 175.47. The top end of the buy range is 184.24, after which Expedia stock would be extended. A stock is considered to be extended when it’s 5% above the proper entry point.

The stock-chart pattern of Expedia is currently comparable to online travel giant Booking Holdings (BKNG), which is currently in a buy zone. Booking stock moved up 0.1%, near 2,523.90. Its buy point from a cup base is 2,516.10, extending the buy zone to 2,641.90.

Booking brands include Priceline.com, Agoda.com and Kayak. The brands for Expedia include Hotels.com, Vrbo, Orbitz and Travelocity.

Expedia Stock Was In Free Fall

Expedia stock went into free fall in March 2020 as the pandemic kicked into high gear, spurring one of the toughest periods the travel industry has ever faced.

Travel spending plunged 42%, or $500 billion, from 2019 to 2020, according to the U.S. Travel Association. International travel plummeted 76%, while business travel fell 70%, it said.

In addition to the online travel companies seeing the light of day after a long down period, American Airlines (AAL), Delta Air Lines (DAL) and United Airlines (UAL), as well as hotel and casino plays, are coming back. But these companies have struggled to return to profitability with international travel curbed for more than 18 months.

Travel is an increasingly competitive market with multiple companies in on the action. In addition to Expedia and Booking Holdings, there’s Sabre (SABR), Airbnb (ABNB), Trivago (TRVG) and TripAdvisor (TRIP).

Second-Quarter Jumped 270%

Expedia, for its second quarter, reported a 270% jump in revenue to $2.1 billion, compared with the year-ago period. But it has six quarters in a row of losses.

The company said it benefited from strong vacation rental performance and improved conventional lodging. But that was offset by continued softness in international travel and corporate travel, and relatively high consumer interest in lower-end accommodations.

Booking trends for lodging, air and other travel products all improved sequentially from the first quarter of 2021. However, the company also warned that the Covid-19 delta variant continues to create uncertainty in the travel industry, and for Expedia stock.

“Unfortunately, the road to full travel recovery remains bumpy until more of the world is vaccinated,” said Chief Executive Peter Kern, in a statement with the Expedia earnings release.

Expedia reports third-quarter results on or around Nov. 4.

Ratings On Expedia Stock

In the stock market, timing is critical. So when you’re looking for stocks to buy or sell, it’s important to do the fundamental and technical analysis that identifies lower-risk entry points that also offer solid potential rewards.

The IBD Stock Checkup tool shows that Expedia stock has an IBD Composite Rating of 57 out of 99. When choosing growth stocks for the biggest potential gains based on the CAN SLIM investment paradigm, focus on those with a Composite Rating of 90 or higher.

But its Relative Strength Rating is 82 out of 99. The rating means that Expedia stock has outperformed 82% of all stocks in the IBD database over the past 12 months. Ideally, look for stocks with a rating of 80 or higher.

If you’re interested in buying large-cap stocks, in these articles you’ll find technical analysis of leading large caps to see if they are in or near a proper buy zone.

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