Expedia Group (NASDAQ:EXPE) is a Seattle-based online travel shopping company for consumer and small business travel. Shares of Expedia have dropped 10% over the past week as of close on February 25.
Markets have been throttled amid fears of the spread of the COVID-19 coronavirus strain. This drop may be exacerbated at Expedia, as the travel industry is expected to be one of the hardest hit due to this crisis.
Airline stocks have also suffered sharp declines in recent weeks. History has demonstrated that the stock market often rebounds after outbreak fears, so investors should consider buying into this violent dip.
The company released its fourth quarter and full-year results for 2019 on February 13. Revenue rose 7% year-over-year to $2.75 billion in Q4 2019 and net income increased to $76 million or $0.52 per share compared to $17 million or $0.11 per share in Q4 2018. Gross bookings climbed 6% to $23.25 billion.
Shares of Expedia are trading at favourable value levels relative to industry peers. Earnings are forecast to grow an attractive rate. One of its only drawbacks remains its high level of debt, but its earnings growth rate should allay some of those concerns.
Investors who missed its sharp post-earnings dip in November now have another opportunity to add at a discount. Expedia is a great target as this market correction bleeds into the final days of February.
