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Free Sample: Momentum Weekly Report For September 14: This Stock Will Travel Well

The following article was previously released on September 14 to the paid subscribers of Momentum at a Reasonable Price. I have made it available to the public in response to requests to see a free sample. The stock increased 13% in just over one month.

As the economy in the U.S. continues to improve, consumers will be in a good position to travel. This creates a good opportunity for Expedia (NASDAQ:EXPE). This online travel company operates these familiar brands: Expedia.com, Hotels.com, Hotwire.com, CarRentals.com, and Travelocity. Expedia makes the process of booking travel/lodging for both consumers and businesses easy and efficient.

An independent travel research firm, Phocus Wright, found that over 50% of U.S. and European leisure and corporate travel expenditures occur online. The research firm also found that the Latin America and Asia Pacific regions have an online penetration rate of 20% to 30%. These rates are showing strength and are expected to continue increasing. I expect Expedia to continue benefiting from this trend.

Expedia has a strategy for growth through product innovation, acquisitions, and global expansion. Product innovation includes making the company's websites conducive and easy to use for consumers and business travelers to research and purchase travel options. The product innovation is in a technology team for each of the company's brands that works on improving conversion and growth rates.

The company also has an eye for acquisitions. Expedia's latest stab at an acquisition is its effort to buy Orbitz (NYSE:OWW). Although Orbitz is expected to post a loss this year, it is expected to be profitable in 2016. This is likely to have positive implications if the deal is approved and completed. The deal is controversial because the Hotel Industry is not in favor...


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