Expedia Group Rises 20% in a Month: Time to Buy the Stock?

Expedia Group EXPE shares have climbed 20.8% over the past month, significantly outperforming the broader market. This rally stands in sharp contrast to the 4.5% decline in the Zacks Leisure and Recreation Services industry and the 1.9% drop in the broader Zacks Consumer Discretionary sector.Expedia Group’s stock rally is driven by robust fourth-quarter 2025 performance, supported by strong travel demand, accelerating B2B growth, margin expansion, rising free cash flow and optimistic guidance for continued growth in 2026.Expedia Group has maintained a clear lead over key rivals Airbnb, Inc. ABNB, Booking Holdings BKNG and TripAdvisor Inc. TRIP. While Airbnb and Booking Holdings returned 4.9% and 10.8%, respectively, TripAdvisor declined 10% in the last month.Airbnb competes with Expedia Group by leading the alternative accommodations market with unique, host-driven stays that challenge both Vrbo and traditional hotel offerings, while Booking Holdings leverages global scale, strong direct traffic and an asset-light model, and TripAdvisor intensifies price competition through reviews and metasearch.EXPE’s One-Month Stock Price PerformanceImage Source: Zacks Investment ResearchDriven by strong operational performance and favorable growth prospects, Expedia Group is gradually transforming into a more efficient and diversified travel platform, further strengthening its long-term investment case. Let's take a closer look at its core strengths.EXPE Builds Momentum on Strong B2B GrowthExpedia Group’s B2B segment has emerged as a key growth engine, delivering significantly stronger performance compared to its consumer business. In the fourth quarter of 2025, B2B gross bookings and revenues surged 24% year over year, substantially outpacing B2C growth. This robust expansion highlights the increasing importance of Expedia Group’s partner-driven ecosystem, which includes travel agents, corporate partners and API integrations.A major driver behind this momentum is the continued success of Expedia Group’s Rapid API platform, which enables partners to seamlessly access its extensive travel inventory. Growth has also been supported by increased marketing activity from key partners and a rising number of active travel agents, contributing to higher transaction volumes. The company is gaining share with existing partners while also onboarding new ones, reinforcing its position as one of the largest and most capable B2B travel platforms globally.Expedia Group is further accelerating B2B growth by extending capabilities from its consumer business into the partner ecosystem. The introduction of new offerings, such as the “Cancel for Any Reason” assurance product, enhances the value proposition for partners and their customers. Additionally, strategic initiatives like the planned acquisition of Tiqets aim to expand the range of travel experiences available through B2B channels, opening up new revenue streams and deepening partner engagement.EXPE’s Strong Capital Position Drives StabilityExpedia Group’s strong capital position provides a solid foundation for long-term stability and strategic flexibility. The company ended 2025 with approximately $5.7 billion in unrestricted cash and short-term investments, reflecting a robust liquidity profile. This substantial cash reserve enables Expedia Group to navigate macroeconomic uncertainties while continuing to invest in growth initiatives and operational improvements.The company’s ability to generate consistent and growing free cash flow further reinforces its financial strength. Expedia Group reported free cash flow of $3.1 billion for 2025, supported by strong operating performance and disciplined execution across its business segments.Expedia Group is also actively returning capital to shareholders while maintaining financial discipline. The company repurchased approximately $1.7 billion worth of shares in 2025. In addition, it increased its quarterly dividend by 20%, indicating confidence in its cash flow outlook and long-term prospects. This solid capital position not only supports stability during periods of volatility but also positions the company to capitalize on strategic opportunities, including acquisitions and technology investments.Valuation: Opportunity to Buy EXPE Stock at a DiscountDespite its strong growth prospects, Expedia Group trades at a forward P/E of 12.15, significantly below the sector average of 17.25, indicating a valuation gap relative to its strengthening fundamentals. This lower valuation highlights an opportunity, as the company benefits from accelerating B2B growth, expanding advertising revenues and improving operating margins. Its growing use of AI to enhance efficiency and scalability further strengthens its long-term outlook, making the stock appealing at current levels.EXPE Forward 12-Month P/E RatioImage Source: Zacks Investment ResearchPositive Analyst Sentiment for EXPEAnalyst confidence in Expedia Group remains strong, with the Zacks Consensus Estimate projecting 2026 revenue growth of 7.67% year over year, within the company’s guidance of 6-9%.The consensus mark for 2026 earnings is pegged at $19.15 per share, up 7.2% over the past 60 days, indicating strong confidence in Expedia Group’s outlook and indicating robust 20.74% year-over-year earnings growth.Image Source: Zacks Investment ResearchConclusion: Buy EXPE Stock NowExpedia Group's growing B2B growth, increasing free cash flow and disciplined capital returns highlight a structurally strong and more diversified business. With AI-driven efficiencies, expanding margins and an attractive valuation discount, the company offers significant upside potential. This momentum, supported by positive analyst sentiment and stable demand trends, appears sustainable — making it a good time for investors to buy EXPE stock now and benefit from its long-term growth trajectory.EXPE carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Expedia Group, Inc. (EXPE): Free Stock Analysis Report TripAdvisor, Inc. (TRIP): Free Stock Analysis Report Booking Holdings Inc. (BKNG): Free Stock Analysis Report Airbnb, Inc. (ABNB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks