This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Online Travel Stocks With Upside

Stocks in this article: PCLN OWW EXPE TZOO MMYT

Expedia (EXPE), the world's largest online travel agent (OTA) in terms of gross bookings, offers travel products and services. Of the 20 analysts covering the stock, 40% recommended buying, while the remaining advise holding. On an average, analysts polled by Bloomberg expect a 35.2% upside from current levels.

The company estimates its advertising and media business, including TripAdvisor Media Network, at $1 billion and its operating income before amortization (OIBA) to exceed 50%. Media business, which accounts for 12% of global revenue, is seen expanding in the upcoming months. Expedia estimates online advertising to grow by 10%, 11% and 15% in North America, Europe and Asia, respectively.

Meanwhile, online share consumer travel spending is seen expanding by 54%, 37% and 21% in North America, Europe and Asia, respectively. Based on a strong product portfolio, sizeable growth opportunities across different products and geographies, and a robust cash flow of $500 million or more annually, Jefferies believes that Expedia has a strong growth potential.

Beginning 2011, Expedia acquired Michigan-based Mobiata, a maker of mobile travel applications like FlightTrack, FareCompare and HotelPal. The same company is the architect of several iPhone travel apps. In a scenario where an increasing number of travelers are using smartphones and other portable devices for their travel needs, Expedia's competitive strategy will likely prove profitable in the future.

Benchmark Capital believes that the company's revenue margin is likely to experience modest expansion, supported by escalating average daily rate recovery and moderating airfare increases, as capacity veers to the right track. Further international expansion, mainly in Europe and the Asia-Pacific region, may push the company's total bookings to grow by 12% year-over-year, revenue by 15%, OIBA growth by 19% and earnings per share by $2 in 2011. Almost 40% of the company's revenue is generated from outside the U.S.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs