We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BKNG Up 15.5% in a Month: Should You Buy, Hold or Sell the Stock?
Read MoreHide Full Article
Booking Holdings’ (BKNG - Free Report) shares have gained 15.5% in the past month compared with the Zacks Internet Commerce industry’s return of 11%. It has also outperformed the Zacks Retail-Wholesale sector’s appreciation of 9.7% over the same timeframe.
Booking Holdings has been benefiting from growing strength in the online travel booking segment. Strong momentum across its merchant and advertising business is aiding top-line growth.
Robust growth in rental car and airline ticket units has been a positive. BKNG is consistently making efforts to enhance its portfolio strength, which has been a key catalyst.
Hence, the question that investors should ponder with — would these efforts help BKNG sustain its momentum?
Let’s analyze the key near-term drivers of Booking Holdings.
Booking Holdings is riding on its strong portfolio. The introduction of several key initiatives, including enhanced connected trip features, expansion of merchant options on Booking.com, advancing AI capabilities, growing alternative accommodations and upgrading the Genius loyalty program are noteworthy developments.
Efforts to enhance the connected trip feature by developing integrated travel solutions — combining trip planning, flight bookings, accommodations and activities with AI technology — are driving growth in BKNG's online travel booking segment.
Its efforts to expand the merchant offerings at Booking.com to provide more benefits to travelers and partner suppliers have been a significant positive.
Growing investment in AI technology to personalize traveler recommendations and enhance customer service through advanced chatbots and other AI-driven tools has been a key driver of growth in the company’s user base.
Integrating the generative AI travel assistant, Penny, with Booking.com’s AI Trip Planner to support travelers has been a significant boost for the company, contributing to a seamless travel experience.
Efforts to enhance the alternative accommodation business by expanding listings available on Booking.com for both travelers and supply partners have been a key driver of growth in the company’s online travel booking segment.
Improvements to the Genius Loyalty Program, such as increased benefits and personalized rewards, have played a crucial role in boosting customer retention and driving greater user engagement.
These are expected to drive top-line growth in the near term. The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $7.61 billion, indicating growth of 3.62% year over year.
The consensus mark for 2024 revenues is pegged at $22.95 billion, suggesting 7.4% growth over 2023.
Stiff Competition Hurts BKNG Stock’s Prospects
Stiff competition from the likes of TripAdvisor (TRIP - Free Report) , Airbnb (ABNB - Free Report) and Expedia Group (EXPE - Free Report) , which are also making continuous efforts toward bolstering travel initiatives, pose a risk to BKNG’s market position.
While shares of both ABNB and TRIP have underperformed BKNG’s shares in the past month, the same for EXPE have outperformed. Shares of Airbnb and TripAdvisor have lost 6.4% and 8.1%, respectively, while Expedia shares have returned 24.1%.
Efforts include Tripadvisor’s introduction of new functionality that allows members to book hotel stays directly within its app through its partnership with global travel technology provider HTS (Hopper Technology Solutions).
Airbnb launched new features for group bookings, including an Icons category with stays hosted by celebrities in music, film, TV and sports.
Expedia, on the other hand, partnered with Wells Fargo and Mastercard to launch two co-branded credit cards, namely One Key and One Key+. The cards are designed to offer more flexibility for U.S. travelers.
Earnings Estimate Shows Downward Trend
The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $77.76 per share, indicating growth of 7.52% year over year. The earnings estimate moved down 5.8% in the past 30 days.
For 2024, the consensus mark for earnings has dropped 1% to $177.9 per share in the past 30 days. The figure suggests 16.34% over 2023.
What Should Investors Do with BKNG Stock?
Booking Holdings’ continuing efforts to bolster its market position and strong prospects in the promising e-commerce market are expected to benefit its top-line growth in the near term.
The Valuation Score of B suggests that BKNG shares are cheap at this moment.
However, the stiff competition and challenging macroeconomic conditions are headwinds.
Given the bright prospects of Booking Holdings, existing shareholders should maintain their positions while new investors should wait for a more favorable entry point.
Image: Bigstock
BKNG Up 15.5% in a Month: Should You Buy, Hold or Sell the Stock?
Booking Holdings’ (BKNG - Free Report) shares have gained 15.5% in the past month compared with the Zacks Internet Commerce industry’s return of 11%. It has also outperformed the Zacks Retail-Wholesale sector’s appreciation of 9.7% over the same timeframe.
Booking Holdings has been benefiting from growing strength in the online travel booking segment. Strong momentum across its merchant and advertising business is aiding top-line growth.
Robust growth in rental car and airline ticket units has been a positive. BKNG is consistently making efforts to enhance its portfolio strength, which has been a key catalyst.
Hence, the question that investors should ponder with — would these efforts help BKNG sustain its momentum?
Let’s analyze the key near-term drivers of Booking Holdings.
Booking Holdings Inc. Price and Consensus
Booking Holdings Inc. price-consensus-chart | Booking Holdings Inc. Quote
Strong Portfolio Drives BKNG Stock’s Prospects
Booking Holdings is riding on its strong portfolio. The introduction of several key initiatives, including enhanced connected trip features, expansion of merchant options on Booking.com, advancing AI capabilities, growing alternative accommodations and upgrading the Genius loyalty program are noteworthy developments.
Efforts to enhance the connected trip feature by developing integrated travel solutions — combining trip planning, flight bookings, accommodations and activities with AI technology — are driving growth in BKNG's online travel booking segment.
Its efforts to expand the merchant offerings at Booking.com to provide more benefits to travelers and partner suppliers have been a significant positive.
Growing investment in AI technology to personalize traveler recommendations and enhance customer service through advanced chatbots and other AI-driven tools has been a key driver of growth in the company’s user base.
Integrating the generative AI travel assistant, Penny, with Booking.com’s AI Trip Planner to support travelers has been a significant boost for the company, contributing to a seamless travel experience.
Efforts to enhance the alternative accommodation business by expanding listings available on Booking.com for both travelers and supply partners have been a key driver of growth in the company’s online travel booking segment.
Improvements to the Genius Loyalty Program, such as increased benefits and personalized rewards, have played a crucial role in boosting customer retention and driving greater user engagement.
These are expected to drive top-line growth in the near term. The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $7.61 billion, indicating growth of 3.62% year over year.
The consensus mark for 2024 revenues is pegged at $22.95 billion, suggesting 7.4% growth over 2023.
Stiff Competition Hurts BKNG Stock’s Prospects
Stiff competition from the likes of TripAdvisor (TRIP - Free Report) , Airbnb (ABNB - Free Report) and Expedia Group (EXPE - Free Report) , which are also making continuous efforts toward bolstering travel initiatives, pose a risk to BKNG’s market position.
While shares of both ABNB and TRIP have underperformed BKNG’s shares in the past month, the same for EXPE have outperformed. Shares of Airbnb and TripAdvisor have lost 6.4% and 8.1%, respectively, while Expedia shares have returned 24.1%.
Efforts include Tripadvisor’s introduction of new functionality that allows members to book hotel stays directly within its app through its partnership with global travel technology provider HTS (Hopper Technology Solutions).
Airbnb launched new features for group bookings, including an Icons category with stays hosted by celebrities in music, film, TV and sports.
Expedia, on the other hand, partnered with Wells Fargo and Mastercard to launch two co-branded credit cards, namely One Key and One Key+. The cards are designed to offer more flexibility for U.S. travelers.
Earnings Estimate Shows Downward Trend
The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $77.76 per share, indicating growth of 7.52% year over year. The earnings estimate moved down 5.8% in the past 30 days.
For 2024, the consensus mark for earnings has dropped 1% to $177.9 per share in the past 30 days. The figure suggests 16.34% over 2023.
What Should Investors Do with BKNG Stock?
Booking Holdings’ continuing efforts to bolster its market position and strong prospects in the promising e-commerce market are expected to benefit its top-line growth in the near term.
The Valuation Score of B suggests that BKNG shares are cheap at this moment.
However, the stiff competition and challenging macroeconomic conditions are headwinds.
Given the bright prospects of Booking Holdings, existing shareholders should maintain their positions while new investors should wait for a more favorable entry point.
Booking Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.