Why the Market Dipped But Booking Holdings (BKNG) Gained Today
Booking Holdings (BKNG) closed the latest trading day at $3,485.70, indicating a +0.23% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.65%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, lost 1.16%.
The online booking service's stock has dropped by 9.44% in the past month, falling short of the Retail-Wholesale sector's gain of 3.99% and the S&P 500's gain of 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Booking Holdings in its upcoming earnings disclosure. The company is expected to report EPS of $13.77, up 18.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.24 billion, up 12.33% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $175.05 per share and a revenue of $23.13 billion, representing changes of +15% and +8.24%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Booking Holdings. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. The Zacks Consensus EPS estimate has moved 2.28% lower within the past month. Right now, Booking Holdings possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Booking Holdings is presently being traded at a Forward P/E ratio of 19.87. This expresses a premium compared to the average Forward P/E of 19.14 of its industry.
Investors should also note that BKNG has a PEG ratio of 1.06 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 0.54 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 44% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Booking Holdings Inc. (BKNG) : Free Stock Analysis Report
