Expedia Group (NASDAQ:EXPE) presents an exciting opportunity for investors who prioritize EPS growth. Expedia is an online travel company that aims to provide a one-stop solution for all travel-related needs. The company operates through several brands including Expedia, Hotels.com, Travelocity, Orbitz, and HomeAway.
In recent years, Expedia has been focusing on enhancing its technological capabilities to offer a seamless user experience. The company’s strategic initiatives include personalizing search results and providing an end-to-end travel journey for customers. Enhancing loyalty programs is another pillar of Expedia’s growth strategy. By offering attractive rewards, Expedia hopes to retain its customers and lure in new ones.
Expedia’s financials have been robust, with the company reporting a revenue growth of 4.6% in the last 12 months. The company has also been investing heavily in research and development to remain ahead of the competition. Expedia’s EPS growth is expected to be 25% per year over the next three to five years. This presents a lucrative opportunity for investors who prioritize growth over dividends.
Expedia’s financial position is also quite strong, with the company having $4.2 billion in cash and no debt. This gives the company the financial flexibility to invest in growth opportunities, pay dividends, or buy back shares. The company’s free cash flow is also positive, which means that it can continue investing in growth initiatives without compromising its financial position.
One potential risk to Expedia’s growth prospects is the company’s dependence on a few key suppliers, namely hotels and airlines. Expedia’s business is reliant on their willingness to participate in the company’s platform, and any disruption in those relationships could impact the company’s financials. Additionally, the travel industry is prone to external factors like natural calamities, terrorist attacks, and political instability. These factors can impact the demand for travel, and consequently, Expedia’s financials.
In summary, Expedia Group presents a promising opportunity for investors who prioritize EPS growth. The company’s strategic initiatives, financial position, and positive cash flow make it a lucrative investment option. However, investors should be aware of the risks associated with the travel industry and Expedia’s dependence on a few key suppliers.