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 up 0.2%. By the end of trading, Expedia fell $1.38 (-2.4%) to $56.13 on average volume. Throughout the day, 2,054,241 shares of Expedia exchanged hands as compared to its average daily volume of 2,681,900 shares. The stock ranged in price between $55.74-$57.46 after having opened the day at $57.09 as compared to the previous trading day's close of $57.51. Other companies within the Leisure industry that declined today were: Ryman Hospitality Properties ( RHP), down 8.1%, Premier Exhibitions ( PRXI), down 4.5%, Marriott International ( MAR), down 4.2% and Famous Dave's of America ( DAVE), down 3.5%.
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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 $7.0 billion and is part of the services sector. The company has a P/E ratio of 42.9, above the S&P 500 P/E ratio of 17.7. Shares are down 6.4% year to date as of the close of trading on Monday. 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 robust revenue growth, reasonable valuation levels and good cash flow from operations. 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, Morgans Hotel Group Company ( MHGC), down 12.9%, Canterbury Park Holding Corporation ( CPHC), down 10.2%, Jamba ( JMBA), down 7.5% and PokerTek ( PTEK), down 5.3% , were all gainers within the leisure industry with Darden Restaurants ( DRI) being today's featured leisure industry leader.

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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