), last year was different. The omicron variant of Covid-19 caused yet another wave of pandemic-related cancellations. However, the stock now appears poised for a strong summer ahead.
That's the opinion of Brian Fitzgerald of Wells Fargo, who projects recovering demand for the travel booking company as omicron fears subside. Additionally, the company recently posted encouraging quarterly earnings despite the blip in late-2021 travel. While cancellations rose during the holiday season, they were not enough to overwhelm the company's financial standing. Moreover, the wave had less of an impact on Expedia compared to the earlier delta variant.
The analyst was confident in his tone, writing that"EXPE remains our preferred play on the online travel sector recovery." He believes the summer may prove lucrative, especially with international and city travelers. It is important to note that Covid-19 driven uncertainty may still cause EXPE to see volatility in the near-term. However, Fitzgerald noted that the company has made significant progress"across key initiatives — streamlining brand strategy and tech platforms, and accelerating the pace of innovation/execution." Expedia is ready to ramp its loyalty program catalyzing upside in the long-term, he added.
Out of over 7,000 financial analysts, Fitzgerald ranks as No. 105. His stock picks have been correct 59% of the time, and he has averaged a return of 41.1% on each one.