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A Dive into eXp World Holdings (EXPI)

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A Dive into eXp World Holdings (EXPI)

Struggling Against the Current


While the technology sector rides the bullish wave in the market, eXp World Holdings (EXPI) finds itself splashing in troubled waters. The cloud-based real estate brokerage company, sporting a Zacks Rank #5 (Strong Sell), struggles against multiple challenges, with its stock spiraling downwards for almost four years. Each rally met with a harsher sell-off, resulting in a staggering 82% loss during this timeframe. Even with modest single-digit sales growth forecasts, EXPI faces the weight of a premium valuation, amplifying the downside risks.

Forecasting a Storm


Like a storm brewing on the horizon, eXp World Holdings’ earnings trajectory has been steadily declining for years. Earnings revisions portray a gloomy picture, with estimates for the current year slashed by 6% and a more unsettling 39% for the next. Looking ahead to 2025, forecasts predict a painful 72% slump in EPS to a mere $0.08 per share, further darkening the company’s financial outlook.

A Glimpse at the Numbers


In the realm of valuations, EXPI currently trades at a forward earnings multiple of 42x, below its three-year median of 62x. However, such premium multiples are usually reserved for firms with high growth prospects. Contrary to this norm, eXp World Holdings anticipates sales growth of just 6% this year and a modest 5% next year, painting a picture of limited growth potential.

Weathering the Storm


Despite the precipitous fall from its peaks, hope flickers faintly for eXp World Holdings. This descent does not signify an inevitable plunge to the abyss. Reflecting on its IPO days, EXPI once stood as a beacon of considerable returns. Nonetheless, with the bygone growth unlikely to resurface, the stock now undergoes a painful reassessment. Until the market reconciles with EXPI’s new business fundamentals, navigating this turbulent stock remains a challenging endeavor. Thus, based on its current trajectory, holding onto eXp World Holdings seems ill-advised.

The opinions expressed rest with the author and not with Nasdaq, Inc.