A Glimpse Into The Expert Outlook On Expedia Group Through 15 Analysts

During the last three months, 15 analysts shared their evaluations of Expedia Group EXPE, revealing diverse outlooks from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $143.73, along with a high estimate of $180.00 and a low estimate of $125.00. Observing a downward trend, the current average is 0.65% lower than the prior average price target of $144.67.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Expedia Group. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Expedia Group. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Expedia Group compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Expedia Group's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Expedia Group's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Expedia Group analyst ratings.

Unveiling the Story Behind Expedia Group

Expedia is the world's second-largest online travel agency by bookings, offering services for lodging (80% of total 2023 sales), air tickets (3%), rental cars, cruises, in-destination, and other (11%), and advertising revenue (6%). Expedia operates a number of branded travel booking sites, but its three core online travel agency brands are Expedia, Hotels.com, and Vrbo. It also has a metasearch brand, Trivago. Transaction fees for online bookings account for the bulk of sales and profits.

Breaking Down Expedia Group's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Expedia Group's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 23.16%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Expedia Group's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 10.85%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Expedia Group's ROE stands out, surpassing industry averages. With an impressive ROE of 43.4%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Expedia Group's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.52%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Expedia Group's debt-to-equity ratio stands notably higher than the industry average, reaching 7.37. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.