CNBC's Jim Cramer literally couldn’t be more enthusiastic in his praise of Expedia stock and its potential to soar higher – and why savvy investors should jump on the opportunity to buy shares ASAP.
"Based on the fundamentals, this stock is absolutely worth buying hand over fist," the "Mad Money"
Expedia late last year agreed to buy HomeAway for $3.9 billion in cash and stock. Cramer “considered the deal transformative and believed it could propel the stock” higher, CNBC reported.
“HomeAway is the world's leading vacation rental platform, with approximately $15 billion in bookings last year. Expedia's main goal with the deal was to access the $100 billion vacation rental industry and the sharing economy,” CNBC explained.
"I suggest buying the stock before the rest of the market realizes just how positive and powerful this story could be."
Expedia stock closed Wednesday at $106.92.
Zerg Watch reports that “lots of rating firms seem to have a target price” set on the stock.
“The median 12-month price target of 26 analysts covering the company is $131, which suggests the stock could still gain more than 23 percent. The highest analyst price target is $180, which implies a gain of 68 percent,” Zerg Watch reported.
However, not everyone on Wall Street is so optimistic about the stock.
TheStreet Quant Ratings rates Expedia as a hold. “The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share,” the Street
(Newsmax wire services contributed to this report).
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