Expedia Inc. (EXPE): Today's Featured Services Loser

Expedia ( EXPE) pushed the Services sector lower today making it today's featured Services loser. The sector as a whole closed the day down 0.9%. By the end of trading, Expedia fell $1.75 (-3.7%) to $45.72 on average volume. Throughout the day, 4.9 million shares of Expedia exchanged hands as compared to its average daily volume of 4.3 million shares. The stock ranged in price between $45.29-$48.58 after having opened the day at $48.01 as compared to the previous trading day's close of $47.47. Other company's within the Services sector that declined today were: China HGS Real Estate ( HGSH), down 22%, Destination Maternity ( DEST), down 19.6%, CD International ( CDII), down 16.1%, and DLH Holdings ( DLHC), down 12.8%.

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. Expedia has a market cap of $5.45 billion and is part of the leisure industry. The company has a P/E ratio of 17.1, above the average leisure industry P/E ratio of 15.9 and below the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Monday. Currently there are five analysts that rate Expedia a buy, two analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Expedia as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and a generally disappointing performance in the stock itself.

On the positive front, SED International Holdings ( SED), up 31.2%, LML Payment Systems ( LMLP), up 9.7%, SmartPros ( SPRO), up 8.2%, and Noah Education Holdings ( NED), up 7.7%, were all gainers within the services sector with Southwest Airlines ( LUV) being today's featured services sector winner.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).
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