Today's Momo Momentum Stock Is Expedia (EXPE)

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 momo momentum 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 $266.0 million.
  • EXPE has a PE ratio of 33.8.
  • EXPE is currently in the upper 30% of its 1-year range.
  • EXPE is in the upper 25% of its 20-day range.
  • EXPE is in the upper 35% of its 5-day range.
  • EXPE is currently trading above yesterday's high.
  • EXPE has experienced a gap between today's open and yesterday's close of 0.6%.

'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in EXPE with the Ticky from Trade-Ideas. See the FREE profile for EXPE NOW at Trade-Ideas

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 33.8. Currently there are 8 analysts that rate Expedia a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Expedia has been 1.8 million shares per day over the past 30 days. Expedia has a market cap of $9.6 billion and is part of the services sector and leisure industry. The stock has a beta of 0.49 and a short float of 10.4% with 3.19 days to cover. Shares are up 19.9% year-to-date as of the close of trading on Friday.

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, solid stock price performance, notable return on equity, reasonable valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 24.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 31.37% and other important driving factors, this stock has surged by 64.40% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, EXPEDIA INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for EXPEDIA INC is currently very high, coming in at 80.43%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 5.97% is above that of the industry average.

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

null

More from Markets

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively

Dow Plunges on Trade War Worries but Walmart and Verizon Finish Positively

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

Tuesday Turnaround in Politics: Is a Trade War on the Horizon?

FANG Stocks Get Swept Up in Broader Market Selloff

FANG Stocks Get Swept Up in Broader Market Selloff

Snap Shares Plunge After Cowen Cuts Price Target

Snap Shares Plunge After Cowen Cuts Price Target

Netflix Shares Hit All-Time High as Market Flounders

Netflix Shares Hit All-Time High as Market Flounders