Back to top

Image: Bigstock

Booking Holdings (BKNG) Stock Slides as Market Rises: Facts to Know Before You Trade

Read MoreHide Full Article

Booking Holdings (BKNG - Free Report) ended the recent trading session at $3,490.62, demonstrating a -0.44% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.29%. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.43%.

The online booking service's shares have seen a decrease of 0.84% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.4% and the S&P 500's gain of 2.08%.

Market participants will be closely following the financial results of Booking Holdings in its upcoming release. The company's earnings per share (EPS) are projected to be $29.62, reflecting a 19.73% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.64 billion, reflecting a 14.68% rise from the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for Booking Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.58% higher. Booking Holdings is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, Booking Holdings is currently exchanging hands at a Forward P/E ratio of 19.64. This denotes a premium relative to the industry's average Forward P/E of 19.07.

Investors should also note that BKNG has a PEG ratio of 0.99 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 0.56 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 103, positioning it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Booking Holdings Inc. (BKNG) - free report >>

Published in