Trade-Ideas: Expedia (EXPE) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Expedia ( EXPE) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Expedia as such a stock due to the following factors:

  • EXPE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $180.8 million.
  • EXPE has traded 414,436 shares today.
  • EXPE is trading at a new lifetime high.

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More details on EXPE:

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. The stock currently has a dividend yield of 0.9%. EXPE has a PE ratio of 62.7. Currently there are 6 analysts that rate Expedia a buy, no analysts rate it a sell, and 11 rate it a hold.

The average volume for Expedia has been 1.9 million shares per day over the past 30 days. Expedia has a market cap of $7.5 billion and is part of the services sector and leisure industry. The stock has a beta of 0.10 and a short float of 10.9% with 4.81 days to cover. Shares are down 8.2% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Expedia as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • EXPE's revenue growth has slightly outpaced the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 16.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for EXPEDIA INC is currently very high, coming in at 84.07%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.18% is above that of the industry average.
  • EXPEDIA INC's earnings per share improvement from the most recent quarter was slightly positive. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXPEDIA INC reported lower earnings of $2.16 versus $2.34 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $2.16).
  • Despite currently having a low debt-to-equity ratio of 0.57, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Despite the fact that EXPE's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.68 is low and demonstrates weak liquidity.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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