Have you been paying attention to shares of Booking Holdings (BKNG)? Shares have been on the move with the stock up 5% over the past month. The stock hit a new 52-week high of $5815.92 in the previous session. Booking Holdings has gained 17.1% since the start of the year compared to the 5.2% move for the Zacks Retail-Wholesale sector and the 7.4% return for the Zacks Internet - Commerce industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on April 29, 2025, Booking Holdings reported EPS of $24.81 versus consensus estimate of $17.25 while it beat the consensus revenue estimate by 3.58%.
For the current fiscal year, Booking Holdings is expected to post earnings of $215.99 per share on $25.66 in revenues. This represents a 15.44% change in EPS on a 8.11% change in revenues. For the next fiscal year, the company is expected to earn $248.19 per share on $27.5 in revenues. This represents a year-over-year change of 14.91% and 7.16%, respectively.
Valuation Metrics
Though Booking Holdings has recently hit a 52-week high, what is next for Booking Holdings? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Booking Holdings has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 26.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 25X. On a trailing cash flow basis, the stock currently trades at 27.6X versus its peer group's average of 15.9X. Additionally, the stock has a PEG ratio of 1.79. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Booking Holdings currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Booking Holdings fits the bill. Thus, it seems as though Booking Holdings shares could have potential in the weeks and months to come.
How Does BKNG Stack Up to the Competition?
Shares of BKNG have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CarGurus, Inc. (CARG). CARG has a Zacks Rank of #1 (Strong Buy) and a Value Score of C, a Growth Score of A, and a Momentum Score of C.
Earnings were strong last quarter. CarGurus, Inc. beat our consensus estimate by 9.52%, and for the current fiscal year, CARG is expected to post earnings of $2.15 per share on revenue of $938.78 million.
Shares of CarGurus, Inc. have gained 4.1% over the past month, and currently trade at a forward P/E of 15.48X and a P/CF of 10.89X.
The Internet - Commerce industry is in the top 26% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BKNG and CARG, even beyond their own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Booking Holdings Inc. (BKNG): Free Stock Analysis Report CarGurus, Inc. (CARG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
