Expedia Inc. (EXPE): Today's Featured Leisure 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 Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Expedia fell $2.83 (-4.7%) to $57.90 on heavy volume. Throughout the day, 4,268,657 shares of Expedia exchanged hands as compared to its average daily volume of 2,530,700 shares. The stock ranged in price between $57.85-$60.55 after having opened the day at $60.25 as compared to the previous trading day's close of $60.73. Other companies within the Leisure industry that declined today were: Orbitz Worldwide ( OWW), down 8.0%, Dover Downs Gaming & Entertainment ( DDE), down 6.6%, Empire Resorts ( NYNY), down 6.2% and PokerTek ( PTEK), down 4.8%.
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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 $7.4 billion and is part of the services sector. The company has a P/E ratio of 45.3, above the S&P 500 P/E ratio of 17.7. Shares are down 1.1% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Expedia a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Expedia as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.

On the positive front, MTR Gaming Group ( MNTG), down 12.3%, Flanigan's ( BDL), down 6.9%, Country Style Cooking Restaurant Chain ( CCSC), down 5.9% and Pizza Inn Holdings ( PZZI), down 5.7%.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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