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

Booking Holdings (BKNG) ended the recent trading session at $4,237.75, demonstrating a -1.23% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.54%. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, added 0.77%.

Shares of the online booking service have appreciated by 5.46% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 4.96%, and the S&P 500's loss of 4.71%.

The investment community will be closely monitoring the performance of Booking Holdings in its forthcoming earnings report. It is anticipated that the company will report an EPS of $29.5, marking a 18.9% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $5.5 billion, indicating a 15.45% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $266.94 per share and a revenue of $30 billion, demonstrating changes of +17.05% and +11.46%, respectively, from the preceding year.

Any recent changes to analyst estimates for Booking Holdings should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, there's been a 0.12% fall in the Zacks Consensus EPS estimate. Booking Holdings is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Booking Holdings currently has a Forward P/E ratio of 16.07. This represents a premium compared to its industry average Forward P/E of 15.01.

We can additionally observe that BKNG currently boasts a PEG ratio of 0.98. 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. The Internet - Commerce was holding an average PEG ratio of 0.85 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 34% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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