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Booking Holdings (BKNG) Stock Dips While Market Gains: Key Facts

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Booking Holdings (BKNG - Free Report) ended the recent trading session at $5,448.03, demonstrating a -1.8% change from the preceding day's closing price. This change lagged the S&P 500's 0.26% gain on the day. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.

Coming into today, shares of the online booking service had lost 0.91% in the past month. In that same time, the Retail-Wholesale sector gained 0.76%, while the S&P 500 gained 2.87%.

Market participants will be closely following the financial results of Booking Holdings in its upcoming release. On that day, Booking Holdings is projected to report earnings of $95.56 per share, which would represent year-over-year growth of 13.91%. Simultaneously, our latest consensus estimate expects the revenue to be $8.71 billion, showing a 9.01% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $220.74 per share and revenue of $26.36 billion, indicating changes of +17.98% and +11.03%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Booking Holdings should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Booking Holdings is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, Booking Holdings is currently being traded at a Forward P/E ratio of 25.13. This denotes a premium relative to the industry average Forward P/E of 22.36.

One should further note that BKNG currently holds a PEG ratio of 1.6. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce was holding an average PEG ratio of 1.47 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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