S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
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West Africa bloc lifts coup sanctions on Niger in a new push for dialogue to resolve tensions
West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Warren Buffett uses his annual letter to warn about Wall Street and recount Berkshire's successes
Better Than Oil Stocks (Ad)
MarketBeat Week in Review – 2/19 - 2/23
Taiwan giant chipmaker TSMC opens first plant in Japan as part of key global expansion
Dangerous Bank Change (3 steps to protect yourself) (Ad)
A collection of the insights Warren Buffett offered in his annual letter Saturday
MILAN FASHION PHOTOS: Gucci sparkles as De Sarno hits stride
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
West Africa bloc lifts coup sanctions on Niger in a new push for dialogue to resolve tensions
West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Warren Buffett uses his annual letter to warn about Wall Street and recount Berkshire's successes
Better Than Oil Stocks (Ad)
MarketBeat Week in Review – 2/19 - 2/23
Taiwan giant chipmaker TSMC opens first plant in Japan as part of key global expansion
Dangerous Bank Change (3 steps to protect yourself) (Ad)
A collection of the insights Warren Buffett offered in his annual letter Saturday
MILAN FASHION PHOTOS: Gucci sparkles as De Sarno hits stride
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
West Africa bloc lifts coup sanctions on Niger in a new push for dialogue to resolve tensions
West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue
S&P 500   5,088.80
DOW   39,131.53
QQQ   436.78
Warren Buffett uses his annual letter to warn about Wall Street and recount Berkshire's successes
Better Than Oil Stocks (Ad)
MarketBeat Week in Review – 2/19 - 2/23
Taiwan giant chipmaker TSMC opens first plant in Japan as part of key global expansion
Dangerous Bank Change (3 steps to protect yourself) (Ad)
A collection of the insights Warren Buffett offered in his annual letter Saturday
MILAN FASHION PHOTOS: Gucci sparkles as De Sarno hits stride
This is the #1 Stock to Buy for the AI Tidal Wave (Ad)
West Africa bloc lifts coup sanctions on Niger in a new push for dialogue to resolve tensions
West Africa's ECOWAS bloc says it's lifting sanctions imposed on Niger over last year’s coup in a new push for dialogue

Expedia or Bookings Holdings: Which Stock Should You Travel With?

Expedia or Bookings Holdings: Which Stock Should You Travel With?

Despite both companies delivering positive earnings, the tape is telling two different stories 

In this article, we’re going to look at Expedia (NASDAQ:EXPE) and Booking Holdings (NASDAQ:BKNG). These are two of the titans of the travel sector. Both reported earnings this week so it’s a good time to look at which of these stocks, if any, is a good buy in this volatile market.  

The charts of both stocks since the pandemic tell a similar story. There was a sharp sell-off. Then there was a sharp recovery as investors suspected that pent-up demand would be unleashed with the arrival of Covid-19 vaccines. Then in 2021, the stocks moved in a choppy fashion as the world dealt with first the delta and then the omicron variant of the coronavirus.  

That brings us to 2022. This was supposed to be the year when travel, at least leisure travel, got back to nearly pre-pandemic levels. And both companies suggest that demand is strong.  

What Did the Earnings Reports Say? 

Expedia reported first and reported negative earnings per share of 47 cents which was a 24% beat over the consensus estimate for a loss per share of 62 cents. Revenue came in as a slight beat with the company reporting $2.25 billion as opposed to the estimate of $2.23 billion.  

This news along with the company’s bullish guidance lifted EXPE stock along with the stocks of the entire sectors. And that included Booking Holdings stock. However, both stocks gave up those gains as part of the broader market sell-off in advance of the Federal Reserve’s decision on interest rates. This wouldn’t be the first time EXPE stock had the misfortune of reporting positive earnings in a bearish week. 


However, when Booking Holdings reported strong earnings on May 5, BKNG stock moved sharply higher while EXPE stock fell hard. Some suggest this was just a case of the stock getting caught in the broad sell-off hitting the market. But there was also some concern when Hilton (NYSE:HLT) gave a forecast for softer demand that contradicted the bullish sentiment.  

Will Travel Demand Remain Strong? 

This is the question that investors must answer for themselves. The Federal Reserve is making no secret of its intention to suppress demand. However, society has been shifting to an experience economy for many years. The pandemic temporarily swung the pendulum in the opposite direction. However, it appears many consumers kept a healthy amount of savings in reserve for post-pandemic travel. 

And both companies are saying summer travel demand remains strong. But what happens after that? By the time summer arrives, consumers will be feeling the effect of what will likely be another 50 basis point interest rate hike. But as this is happening, consumers won’t be experiencing much relief at the pump or at the grocery store.  

And the Winner Is...? 

This is a tough one. Both companies are getting bullish price target increases since delivering earnings. And due to their acquisitions, it’s likely travelers use one or both companies for their travel needs. Both companies reach into all sectors of the travel industry. So should we experience a downturn in travel, it will affect both companies relatively equally.  

I’ll put it this way. If there’s any bullish news for the economy, both stocks should move higher. However, I like Booking Holdings margins a little better. But if you’re an investor looking to make a short-term move, I’d give the nod to EXPE stock based on the current chart action. As of this writing, Expedia does look oversold from a purely technical standpoint.  

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Should you invest $1,000 in Expedia Group right now?

Before you consider Expedia Group, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Expedia Group wasn't on the list.

While Expedia Group currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Expedia Group (EXPE)
4.7316 of 5 stars
$136.30-2.0%N/A25.33Moderate Buy$149.29
Booking (BKNG)
4.0913 of 5 stars
$3,505.96-10.1%N/A29.72Moderate Buy$3,664.69
Compare These Stocks  Add These Stocks to My Watchlist 

Chris Markoch

About Chris Markoch

  • CTMarkoch@msn.com

Editor & Contributing Author

Retirement, Individual Investing

Experience

Chris Markoch has been an editor & contributing writer for MarketBeat since 2018.

Areas of Expertise

Value investing, retirement stocks, dividend stocks

Education

Bachelor of Arts, The University of Akron

Past Experience

InvestorPlace


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