Bull of the Day: eXp World (EXPI)

David Bartosiak

The Western World will never be the same. The COVID-19 pandemic is as earth-shattering as 9/11 in many ways. This generational event will bring about a dramatic shift in our every day lives. At the very least, it’s going to reshape the economy. There are entire industries that are going to have to change the way they do business. In some cases, those businesses won’t be needed any more. To draw a parallel from the animal world, it’s adapt or die.

Today’s Bull of the Day is a stock from an industry at risk, real estate. However, their forward-thinking approach is changing the way this industry does business. I’m talking about Zacks Rank #1 (Strong Buy) eXp World Holdings (EXPI).

eXp World Holdings, Inc. provides cloud-based real estate brokerage services for residential real estate market in the United States and Canada. The company facilitates buyers to search real-time property listings and sellers to list their properties through its Website, exprealty.com; and provides buyers and sellers access to a network of professional, consumer-centric agents, and brokers. It also offers access to collaborative tools and training services for real estate brokers and agents. In addition, the company provides marketing, training, and other support services to its brokers and agents through proprietary technology enabled services, and technology and support services contracted to third parties. 

Earnings estimates have been moving in a positive direction. Over the last thirty days, analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimate for the current year from an 8-cent loss to a one-cent gain. Next year’s number is up from 18 cents to 21 cents.

Exp World Holdings, Inc. Price and Consensus

Exp World Holdings, Inc. Price and Consensus

Exp World Holdings, Inc. price-consensus-chart | Exp World Holdings, Inc. Quote

The revenue growth is the real story here. Current quarter estimates call for 52.7% revenue growth with next quarter slated to come in at 49.8%. That helps the current year estimate round out at 46.2%. Companies can apply all sorts of trickery in order to meet those EPS estimates, but it’s much tougher to get those revenue numbers up. Solid revenue growth here gives some downside cushion.

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