Booking Holdings (BKNG) Dips More Than Broader Market: What You Should Know

In the latest close session, Booking Holdings (BKNG) was down 1.99% at $4,294.29. The stock trailed the S&P 500, which registered a daily loss of 0.28%. Elsewhere, the Dow saw a downswing of 0.44%, while the tech-heavy Nasdaq depreciated by 0.28%.

The online booking service's stock has climbed by 2.61% in the past month, exceeding the Retail-Wholesale sector's loss of 3.76% and the S&P 500's loss of 3.59%.

Analysts and investors alike will be keeping a close eye on the performance of Booking Holdings in its upcoming earnings disclosure. The company is forecasted to report an EPS of $29.5, showcasing a 18.9% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $5.5 billion, showing a 15.45% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $266.46 per share and revenue of $30 billion, which would represent changes of +16.84% and +11.46%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Booking Holdings. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.09% increase. Booking Holdings is currently a Zacks Rank #3 (Hold).

In the context of valuation, Booking Holdings is at present trading with a Forward P/E ratio of 16.44. Its industry sports an average Forward P/E of 15.6, so one might conclude that Booking Holdings is trading at a premium comparatively.

Investors should also note that BKNG has a PEG ratio of 1 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.87.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 36% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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

This article originally published on Zacks Investment Research (zacks.com).

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