NEW YORK (TheStreet) -- Expedia (EXPE) - Get Expedia Group, Inc. Report stock is sliding by 2.78% to $121.45 in late-afternoon trading on Tuesday, as stocks within the travel industry decline following the State Department's worldwide travel alert issued on Monday evening.
The alert expires on February 24, 2016.
Expedia is an online travel company based in Bellevue, WA.
The State Department urged travelers to exercise caution while traveling, in light of continued plans for attacks by various terrorist groups and unaffiliated people inspired by recent attacks.
The alert comes during the busiest travel week of the year, with an estimated 46.9 million people traveling 50 miles or farther from home this Thanksgiving weekend, according to CNN.
Shares of fellow travel websites Priceline (PCLN) and TripAdvisor (TRIP) are lower this afternoon as well.
Separately, TheStreet Ratings team rates EXPEDIA INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate EXPEDIA INC (EXPE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 47.16% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EXPE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- EXPEDIA INC has improved earnings per share by 9.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, EXPEDIA INC increased its bottom line by earning $3.00 versus $1.66 in the prior year. This year, the market expects an improvement in earnings ($4.11 versus $3.00).
- EXPE's revenue growth trails the industry average of 38.3%. Since the same quarter one year prior, revenues rose by 13.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, EXPEDIA INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: EXPE
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.