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Booking Holdings (BKNG) Rises Yet Lags Behind Market: Some Facts Worth Knowing

The latest trading session saw Booking Holdings (BKNG) ending at $3,440.94, denoting a +0.76% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.87%. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 1.11%.

The online booking service's shares have seen a decrease of 5.79% over the last month, not keeping up with the Retail-Wholesale sector's loss of 3.67% and the S&P 500's loss of 3.97%.

Investors will be eagerly watching for the performance of Booking Holdings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 2, 2024. The company is expected to report EPS of $14.02, up 20.86% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.25 billion, reflecting a 12.5% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $175.86 per share and a revenue of $23.09 billion, demonstrating changes of +15.53% and +8.07%, respectively, from the preceding year.

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Investors should also take note of any recent adjustments to analyst estimates for Booking Holdings. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.23% increase. As of now, Booking Holdings holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Booking Holdings has a Forward P/E ratio of 19.42 right now. This valuation marks a discount compared to its industry's average Forward P/E of 20.35.

One should further note that BKNG currently holds a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.69.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 45, putting it in the top 18% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Booking Holdings Inc. (BKNG) : Free Stock Analysis Report

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