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

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Expedia ( EXPE) pushed the Services sector lower today making it today's featured Services laggard. The sector as a whole closed the day down 0.2%. By the end of trading, Expedia fell 83 cents (-1.3%) to $62.69 on light volume. Throughout the day, 1.1 million shares of Expedia exchanged hands as compared to its average daily volume of 2.4 million shares. The stock ranged in price between $62.58-$64.20 after having opened the day at $64.20 as compared to the previous trading day's close of $63.52. Other companies within the Services sector that declined today were: CIBT Education Group ( MBA), down 17.7%, Bluefly ( BFLY), down 11.8%, WidePoint Corporation ( WYY), down 10.4%, and Green Dot ( GDOT), down 8.1%.
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Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. Expedia has a market cap of $7.68 billion and is part of the leisure industry. The company has a P/E ratio of 24.6, above the S&P 500 P/E ratio of 17.7. Shares are up 2.3% year to date as of the close of trading on Tuesday. Currently there are eight analysts that rate Expedia a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Expedia as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, notable return on equity, attractive valuation levels and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Globus Maritime ( GLBS), up 13.6%, iParty Corporation ( IPT), up 13.3%, Christopher & Banks Corporation ( CBK), up 12.9%, and Fortune Industries ( FFI), up 11.2%, were all gainers within the services sector with Family Dollar Stores ( FDO) being today's featured services sector leader.

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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