In the latest trading session, Booking Holdings (BKNG) closed at $5,482.23, marking a +2.79% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.11%. Meanwhile, the Dow gained 1.19%, and the Nasdaq, a tech-heavy index, added 1.43%.
Heading into today, shares of the online booking service had gained 0.01% over the past month, lagging the Retail-Wholesale sector's gain of 0.9% and the S&P 500's gain of 3.92%.
Investors will be eagerly watching for the performance of Booking Holdings in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $49.95, reflecting a 19.21% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.54 billion, up 11.62% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $214.06 per share and revenue of $25.66 billion, indicating changes of +14.41% and +8.11%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Booking Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0% rise in the Zacks Consensus EPS estimate. At present, Booking Holdings boasts a Zacks Rank of #3 (Hold).
With respect to valuation, Booking Holdings is currently being traded at a Forward P/E ratio of 24.92. This signifies a discount in comparison to the average Forward P/E of 25.14 for its industry.
Investors should also note that BKNG has a PEG ratio of 1.66 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 1.46 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 96, finds itself in the top 40% echelons of all 250+ industries.
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.
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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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