After crushing its income and earnings expectations on November 2nd, Expedia (EXPE) has been on a roll. Listed below are the quarterly numbers that the web journey big posted just a little over two weeks in the past:
- Revenues: $3.93 billion (precise) vs. $3.87 billion (estimate)
- EPS: $5.41 (precise) vs. $5.15 (estimate)
The transfer in EXPE has been so robust that it ranks as THE high performing inventory within the S&P 500 over the previous month, gaining greater than 34%. Whereas it is more likely to pull again from overbought circumstances at any time, the larger image breakout above key worth resistance close to 122-123 is important:
The prior two overbought conditions, EXPE continued rising in January, however clearly fell again in June, earlier than extending its rally by July.
Investing is all about decisions, nonetheless. Whereas EXPE appears a lot better now than it has at any time over the previous 12 months, I nonetheless should query its relative energy vs. a main competitor like Reserving Holdings (BKNG). This charts offers us just a little completely different angle:
BKNG was the clear selection within the early years of competitors as EXPE constantly underperformed on a relative foundation. That is modified over the previous dozen years, nonetheless, as energy appears to maneuver backwards and forwards. After a slightly vital long-term relative breakdown on EXPE, it is stormed again. It might appear that EXPE’s present relative energy might final for awhile, based mostly on the historical past of those two – at the very least that is the best way I would view it till present relative energy reverses.
Earlier than inserting any trades, I practically at all times evaluation historic patterns on the benchmark S&P 500 as it might present us essential clues as to total market course. If you would like to obtain this information for FREE to assist enhance your buying and selling/investing success, merely CLICK HERE and obtain my 7-page PDF. One attention-grabbing reality is that the identical 10-consecutive day interval of EVERY calendar month has produced over 80% of the good points on the S&P 500 since 1950. So basically 30% of the month produces greater than 80% of the good points. It is likely to be worthwhile in your buying and selling to know which days produce these good points!
Pleased buying and selling!
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, an organization offering a analysis and academic platform for each funding professionals and particular person buyers. Tom writes a complete Every day Market Report (DMR), offering steering to EB.com members day by day that the inventory market is open. Tom has contributed technical experience right here at StockCharts.com since 2006 and has a elementary background in public accounting as effectively, mixing a singular talent set to strategy the U.S. inventory market.