NEW YORK ( ETF Expert) -- The battle for both the tourist and business travel dollars is heating up as the economy recovers, and the market seems to favor Expedia (EXPE - Get Report) as the place to invest.
On its recent earnings report the online travel business reported 22% more tickets sold year over year with a 14% increase in revenue and 21% increase to the bottom line. The stock price has jumped.
Most of you should have seen this coming as the stock's price momentum has predicted the travel recovery. During the past year, while the market as measured by the
Value Line Index
was up 12%, Expedia's price took wings and soared 109% as this graph provided by Barchart shows:
Expedia, together with its subsidiaries, operates as an online travel company in the United States and internationally. It provides travel products and services to leisure and corporate travelers, offline retail travel agents, and travel service providers through a portfolio of brands, including Expedia.com, hotels.com, Hotwire.com, Expedia Affiliate Network, Classic Vacations, Expedia Local Expert, Expedia CruiseShipCenters, Egencia, eLong, Inc., and Venere Net SpA.
The company's travel offerings consist of airline tickets, hotel rooms, car rentals, destination services, cruises, and package travel provided by various commercial airlines, lodging properties, car rental companies, destination service providers, cruise lines, and other travel product and service companies on a stand-alone and package basis. It also facilitates the booking of hotel rooms, airline seats, car rentals, and destination services from its travel suppliers; and acts as an agent in the transaction, passing reservations booked by its travelers to the relevant travel provider. The company was founded in 1996 and is headquartered in Bellevue, Wash. (Yahoo Finance profile)
Factors to consider
(technical indicators provided by Barchart): The stock earned an 88% Barchart technical buy signal but gets an hold from the Trend Spotter. If the present price momentum holds this could turn to a buy signal by the end of today.
The price is above its 20-, 50- and 100-day moving average, with the stock hitting four new highs and up 1.87% in the last month. The Relative Strength Index is 61.93% and Barchart computes a technical support level at 49.36. The stock recently traded at $58.57, which is above its 50-day moving average of $54.65.