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Booking Holdings (BKNG) Ascends While Market Falls: Some Facts to Note

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Booking Holdings (BKNG - Free Report) closed the latest trading day at $3,511.56, indicating a +0.33% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.29% for the day. Meanwhile, the Dow experienced a drop of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

The online booking service's stock has dropped by 6.37% in the past month, falling short of the Retail-Wholesale sector's gain of 5.15% and the S&P 500's gain of 4.42%.

The investment community will be closely monitoring the performance of Booking Holdings in its forthcoming earnings report. On that day, Booking Holdings is projected to report earnings of $13.77 per share, which would represent year-over-year growth of 18.71%. Simultaneously, our latest consensus estimate expects the revenue to be $4.24 billion, showing a 12.33% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $175.05 per share and a revenue of $23.13 billion, signifying shifts of +15% and +8.24%, respectively, from the last year.

It is also important to note the recent changes to analyst estimates for Booking Holdings. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.12% downward. Right now, Booking Holdings possesses a Zacks Rank of #3 (Hold).

In terms of valuation, Booking Holdings is currently trading at a Forward P/E ratio of 19.99. This valuation marks a discount compared to its industry's average Forward P/E of 20.41.

We can additionally observe that BKNG currently boasts a PEG ratio of 1.07. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 0.6 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 25% 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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