Logic is often overrated in the stock market, which looks ahead and moves up and down at least as much because of psychology and investor perception as cold, hard facts. Expedia Group (EXPE) is a good example of that, explains Mike Cintolo, editor of Cabot Growth Investor.
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The firm is one of (if not the) largest travel firms out there, operating many popular sites (including Expedia.com, Hotels.com, VRBO, Orbitz, Travelocity and many others). Anyone who has traveled at all in the past couple of years knows it’s been boom times, with flights and hotels full (and prices up).
Indeed, Expedia’s bottom line has recovered in a big way since the pandemic and should notch a new high near $8.50 per share soon. Free cash flow should come in even larger, likely around $15 per share for 2023.
That’s thanks to industry-wide conditions, yes, but also some company-specific offerings. They include a rapidly growing business-to-business…
