In the latest trading session, Booking Holdings (BKNG) closed at $3,097.91, marking a +1.15% move from the previous day. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.13%, and the Nasdaq, a tech-heavy index, added 0.45%.
Prior to today's trading, shares of the online booking service had gained 0.66% over the past month. This has outpaced the Retail-Wholesale sector's loss of 2.13% and the S&P 500's loss of 1.38% in that time.
Wall Street will be looking for positivity from Booking Holdings as it approaches its next earnings report date. On that day, Booking Holdings is projected to report earnings of $68.36 per share, which would represent year-over-year growth of 28.91%. Meanwhile, our latest consensus estimate is calling for revenue of $7.23 billion, up 19.47% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $144.29 per share and revenue of $21.09 billion. These totals would mark changes of +44.54% and +23.38%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Booking Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Booking Holdings currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Booking Holdings has a Forward P/E ratio of 21.23 right now. For comparison, its industry has an average Forward P/E of 20.58, which means Booking Holdings is trading at a premium to the group.
Investors should also note that BKNG has a PEG ratio of 1.06 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 0.76 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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