Expedia Group’s (EXPE) Upgraded Zacks Rank: A New Opportunity for Investors
Expedia Group, Inc. (EXPE), a leading online travel company, has recently been upgraded to a Zacks Rank #2 (Buy) by our proprietary model. This upgrade reflects growing optimism about the company’s earnings prospects, which could potentially drive the stock higher in the near term.
A Strong Q2 Earnings Report
The upgrade comes on the heels of Expedia’s impressive second-quarter 2021 earnings report. The company reported a non-GAAP EPS of $1.01, surpassing the Zacks Consensus Estimate by 18 cents. Revenues also came in above expectations, reaching $2.94 billion, up 47% year-over-year. These strong results were driven by a robust recovery in travel demand, particularly in the leisure segment.
Continued Recovery in Travel Industry
The travel industry has been one of the hardest hit sectors during the pandemic, but recent data suggests a strong recovery is underway. According to the Transportation Security Administration (TSA), more than 2 million passengers passed through U.S. airports for the first time since the pandemic began in mid-March 2020. This is a significant increase from the 1.5 million daily passengers in late June and a clear sign that Americans are eager to travel again.
Expedia is well-positioned to capitalize on this recovery, given its strong brand recognition and diverse portfolio of travel offerings. The company’s brands include Expedia.com, Hotels.com, Orbitz, Travelocity, and Vrbo, among others. These brands cater to both leisure and business travelers, allowing Expedia to tap into various segments of the market.
Positive Impact on Expedia’s Stock
The upgraded Zacks Rank is a bullish sign for EXPE stock. Historically, stocks with a Zacks Rank #1 (Strong Buy) or #2 (Buy) have outperformed the broader market. In fact, according to our research, the top 50% of Zacks Ranked stocks have returned an average of +25.2% annually compared to the S&P 500’s +10.1%.
What Does This Mean for Investors and the World?
For individual investors, the upgraded Zacks Rank provides an opportunity to capitalize on Expedia’s strong earnings prospects and the broader recovery in the travel industry. However, it’s important to remember that investing always comes with risks and it’s crucial to consider your personal financial situation and investment objectives before making any investment decisions.
On a larger scale, the travel industry’s recovery could have a positive impact on the global economy. The International Air Transport Association (IATA) expects the global air travel market to reach pre-pandemic levels by 2023. This would not only boost the travel industry but also the related sectors, such as hospitality, transportation, and retail.
Conclusion
Expedia Group’s upgraded Zacks Rank to a Buy is a bullish sign for the company’s earnings prospects and the broader travel industry. With a strong Q2 earnings report and a recovering travel market, EXPE stock could be an attractive investment opportunity for those looking to capitalize on the industry’s recovery. However, as always, it’s important to consider your personal financial situation and investment objectives before making any investment decisions. The travel industry’s recovery could also have a positive impact on the global economy, boosting related sectors and potentially leading to broader market growth.
- Expedia Group reports strong Q2 earnings, surpassing expectations
- Zacks upgrades EXPE to a Buy, reflecting earnings optimism
- Travel industry shows signs of a robust recovery
- Expedia well-positioned to capitalize on the recovery
- Historically, stocks with a Zacks Rank #1 or #2 have outperformed the market
- Recovery in travel industry could have a positive impact on the global economy
