Time to travel (EXPE)?

Expedia Group Inc (EXPE)

While the pending pandemic placed a hold on your travel plans and the idea of sipping a couple of Corona’s under a palm tree has passed, this online travel group might brighten your day.

Click logo to view Travel Company Shares.
on EasyEquities

Fundamentals

The coronavirus outbreak has weighed heavily on the Expedia Group Inc share price since the start to the year, which has seen the travel booking group’s share price down over 11%. To make things worse, the group has also announced that it would cut around 12% of its workforce. These job cuts are to streamline efforts under chairman Barry Diller and has nothing to do with the coronavirus.

The CFO, Eric Hart has, however, forecast a $30 to $40 million loss in Expedia’s earnings from the ongoing Covid-19 (Coronavirus) outbreak.

Expedia Group Inc (EXPE) share overview:

• Sector: Consumer Discretionary
• Market Cap of $13.79 Billion
• Dividend Yield: 1.38%
• Price/Earnings (LTM): 26.1
• Price/Book: 2.5
• PEG: 0.94
• 52 Week Range low of $94.31 and $139.42 per share high.

Expedia Group Limited has declared a $0.34 per share dividend and the stock will go ex-dividend on the 9^th of March 2020 with the dividend payable date scheduled for the 26^th of March 2020.

Chart Life

The price action has been in a trading range over the last couple of years and if we see a break of the 91.80 support level then we might expect more downside to come. If the support level does hold coupled with positive fundamental factors, the upper levels at 114.63 and 140.41 might be targeted.

Source - Bloomberg

Informed decisions

The travel industry, amongst others, has undoubtedly felt the brunt of the coronavirus outbreak over the last two months. There is possibly more downside to come in all sectors as global supply and demand experiences slowdown, putting strain on the worldwide economy. If we see a rebound in the market then we might expect to see the buyers return and buy-in at lower levels.

Click logo to view Travel Company Shares.
on EasyEquities

Portfolio particulars

• Portfolio Neutral (Current)*
• Portfolio Buy opportunity: Neutral**
• WhatsTheBeef long term target price: Neutral.

Know your company: Expedia Group Inc (EXPE)

• Expedia Group is an online travel shopping company for consumer and small business travel.
• Founded as a division of Microsoft in October 1996, Expedia was spun off into a public company in 1999.
• Its websites, which primarily travel fare aggregators and travel metasearch engines, include CarRentals.com, Expedia.com, HomeAway, Hotels.com, Hotwire.com, Orbitz, Travelocity, Trivago, Venere.com and vrbo.

Sources – Expedia Group Inc, EasyResearch, Bloomberg, Zacks, Benzinga, SeekingAlpha

Follow Barry Dumas
@BEEF_FINMARKETS

Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.