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

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Booking Holdings (BKNG - Free Report) closed at $2,609.79 in the latest trading session, marking a -0.16% move from the prior day. This move lagged the S&P 500's daily gain of 0.08%. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.

Prior to today's trading, shares of the online booking service had lost 1.22% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.88% and the S&P 500's gain of 6.1% in that time.

Investors will be hoping for strength from Booking Holdings as it approaches its next earnings release. On that day, Booking Holdings is projected to report earnings of $28.81 per share, which would represent year-over-year growth of 51%. Meanwhile, our latest consensus estimate is calling for revenue of $5.11 billion, up 19.11% from the prior-year quarter.

BKNG's full-year Zacks Consensus Estimates are calling for earnings of $136.88 per share and revenue of $20.35 billion. These results would represent year-over-year changes of +37.11% and +19.06%, respectively.

Investors might also notice recent changes to analyst estimates 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 company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.47% higher within the past month. Booking Holdings currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, Booking Holdings is holding a Forward P/E ratio of 19.1. For comparison, its industry has an average Forward P/E of 19.96, which means Booking Holdings is trading at a discount to the group.

Investors should also note that BKNG has a PEG ratio of 1.16 right now. 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. BKNG's industry had an average PEG ratio of 1.01 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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