AI stock analysis · Travel Services · Last analyzed Aug 16, 2026
Compass Score
3.0/5
Call
Hold
Price
$332.69
AI Target
$333.86 +0.4%
AI Analyst Summary
Expedia is executing a compelling earnings recovery story, with YoY EPS growth of 188.7% and a forward P/E of just 13.8x suggesting the market has not yet fully priced in its near-term earnings power. A PEG ratio near 1.0, a 4-for-4 recent EPS beat streak, and 14% revenue growth underscore broad-based operational momentum as travel demand remains resilient. The key risk is the stock's near-zero upside to the consensus price target, suggesting limited near-term re-rating potential absent a material positive catalyst.
Catalysts
Next quarterly earnings report — continuation of the 4-for-4 beat streak could drive analyst target price upgrades and sentiment improvement among the 20 Hold-rated analysts.
Acceleration in B2B travel platform (Expedia for Business / TAAP) adoption, which could expand revenue mix toward higher-margin, recurring segments and support forward earnings revisions.
Potential capital return announcements (buybacks or dividend increases) given improving free cash flow generation, which could act as a near-term re-rating trigger for the stock.
Fundamentals
PeTrailing P/E 20.9x / Forward P/E 13.8x · 4.0/5
Trailing P/E of 20.9x is reasonable for the Consumer Cyclical sector, and the forward P/E compressing to 13.8x signals strong expected earnings growth. Valuation looks attractive relative to near-term earnings power.
PegPEG 1.03 · 4.0/5
PEG of 1.03 is just above the 1.0 threshold for a top score but remains highly constructive, indicating earnings growth is broadly keeping pace with the stock's valuation. Near-unity PEG with strong growth is a positive signal.
Analyst RatingBuy consensus (2.1) · 4.0/5
Consensus of 2.1 across 35 analysts (17 Buy / 20 Hold / 1 Sell) reflects a constructive buy-leaning sentiment with broad coverage. Falls in the 1.5–2.5 range mapping to a score of 4.
YoY earnings growth of 188.7% is exceptional and well above the 25% threshold for a top score. Revenue growth of 14% provides a solid top-line foundation. Even accounting for potential base effects, the magnitude and breadth of growth warrants a 5.
A perfect 4-for-4 EPS beat rate over the last four quarters is strong, but with only 4 quarters of data available the full 8-quarter history cannot be assessed. Scored 4 to reflect strong recent execution with limited history.
Consistent 4-for-4 EPS beats alongside explosive earnings growth and constructive analyst sentiment indicate disciplined capital allocation and effective operational management. No red flags in the data; a conservative 4 reflects limited longer-term history.
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