In the latest trading session, Booking Holdings (BKNG) closed at $5,569.70, marking a +1.16% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.21%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 0.45%.
Heading into today, shares of the online booking service had gained 1.85% over the past month, lagging the Retail-Wholesale sector's gain of 5.92% and the S&P 500's gain of 3.07%.
Market participants will be closely following the financial results of Booking Holdings in its upcoming release. The company's upcoming EPS is projected at $95.56, signifying a 13.91% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $8.71 billion, showing a 9.01% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $220.74 per share and revenue of $26.36 billion, which would represent changes of +17.98% and +11.03%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Booking Holdings. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 remained stagnant within the past month. Booking Holdings is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Booking Holdings's current valuation metrics, including its Forward P/E ratio of 24.94. This signifies a premium in comparison to the average Forward P/E of 18.51 for its industry.
Also, we should mention that BKNG has a PEG ratio of 1.59. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.56.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 40% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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