Booking Holdings (BKNG) Beats Market Returns: Some Facts to Consider

Booking Holdings (BKNG) closed the most recent trading session at $4,119.09, up 0.76% from the previous trading session. The stock outperformed the S&P 500, which posted a daily gain of 0.64%. At the same time, the Dow Jones gained 1.85% and the tech-heavy Nasdaq gained 0.2%.

Heading into today, shares of the online booking service had gained 3.41% over the past month, outpacing the Retail-Wholesale sector’s gain of 2.58% and lagging the S&P 500’s gain of 3.82% in that time.

Booking Holdings’ upcoming earnings release will be of great interest to investors. The company’s earnings report is expected on August 1, 2024. The company’s next EPS is projected at $39.22, which would represent an increase of 4.25% from the same quarter last year. At the same time, our latest consensus estimate is projecting revenue of $5.78 billion, up 5.76% from the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $178.55 per share and revenue of $23.09 billion, showing changes of +17.3% and +8.05%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Booking Holdings. These recent revisions tend to reflect the evolving nature of near-term business trends. As a result, upward revisions to estimates express analysts’ positivity about the company’s business operations and its ability to generate earnings.

Research indicates that these estimate revisions are directly correlated with near-term stock price momentum. Investors can take advantage of this by utilizing the Zacks Rank. This model takes these estimate changes into account and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Booking Holdings carries a Zacks Rank of #3 (Hold).

In terms of valuation, Booking Holdings is currently trading at a forward price-to-earnings ratio of 22.9. This represents a premium to the industry average forward price-to-earnings ratio of 22.35.

It is also worth mentioning that BKNG sports a PEG ratio of 1.22. The PEG ratio is similar to the widely used price-to-earnings ratio, but this metric also takes into account the company’s expected earnings growth rate. BKNG’s industry had an average PEG ratio of 1.08 as of yesterday’s close.

The Internet – Commerce sector is part of the Retail – Wholesale Trade sector. Currently, this sector has a Zacks Rank of #59, which puts it in the top 24% of all 250+ sectors.

The Zacks Industry Rank gauges the strength of our various industry groups by calculating 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.

Be sure to use Zacks.com to monitor all of these stock-moving metrics, and more, throughout the coming trading sessions.

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