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"We rate EXPEDIA INC (EXPE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. 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 analysis by TheStreet Ratings Team goes as follows:
- EXPE's revenue growth has slightly outpaced the industry average of 13.1%. Since the same quarter one year prior, revenues rose by 22.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 59.01% and other important driving factors, this stock has surged by 37.31% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EXPE should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 83.04%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.01% significantly outperformed against the industry average.
- You can view the full analysis from the report here: EXPE Ratings Report