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Booking Holdings (BKNG) Outpaces Stock Market Gains: What You Should Know

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Booking Holdings (BKNG) closed at $1,912.93 in the latest trading session, marking a +1.88% move from the prior day. This change outpaced the S&P 500's 1.21% gain on the day. Elsewhere, the Dow gained 1.03%, while the tech-heavy Nasdaq lost 0.01%.

Heading into today, shares of the online booking service had gained 3.71% over the past month, outpacing the Retail-Wholesale sector's gain of 2.38% and the S&P 500's gain of 3.2% in that time.

Investors will be hoping for strength from Booking Holdings as it approaches its next earnings release, which is expected to be August 3, 2022. The company is expected to report EPS of $17.73, up 795.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.35 billion, up 101.34% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $98.66 per share and revenue of $17.47 billion, which would represent changes of +115.56% and +59.47%, respectively, from the prior 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.02% lower. Booking Holdings is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, Booking Holdings currently has a Forward P/E ratio of 19.03. Its industry sports an average Forward P/E of 24.68, so we one might conclude that Booking Holdings is trading at a discount comparatively.

Investors should also note that BKNG has a PEG ratio of 1.18 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 was holding an average PEG ratio of 1.25 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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.

To follow BKNG in the coming trading sessions, be sure to utilize Zacks.com.


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