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Here's Why Booking Holdings (BKNG) Fell More Than Broader Market
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Booking Holdings (BKNG - Free Report) ended the recent trading session at $171.63, demonstrating a -2.33% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
The online booking service's stock has climbed by 13.7% in the past month, exceeding the Retail-Wholesale sector's loss of 2.86% and the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of Booking Holdings in its upcoming release. The company's upcoming EPS is projected at $2.48, signifying a 11.71% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.19 billion, showing a 5.74% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.44 per share and a revenue of $29.4 billion, signifying shifts of +14.47% and +9.23%, respectively, from the last year.
Any recent changes to analyst estimates for Booking Holdings should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Booking Holdings holds a Zacks Rank of #3 (Hold).
In terms of valuation, Booking Holdings is currently trading at a Forward P/E ratio of 16.83. This denotes no noticeable deviation relative to the industry average Forward P/E of 16.83.
One should further note that BKNG currently holds a PEG ratio of 1.05. 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. BKNG's industry had an average PEG ratio of 1.03 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Booking Holdings (BKNG) Fell More Than Broader Market
Booking Holdings (BKNG - Free Report) ended the recent trading session at $171.63, demonstrating a -2.33% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.22%. On the other hand, the Dow registered a loss of 0.98%, and the technology-centric Nasdaq decreased by 1.35%.
The online booking service's stock has climbed by 13.7% in the past month, exceeding the Retail-Wholesale sector's loss of 2.86% and the S&P 500's gain of 1.56%.
The investment community will be paying close attention to the earnings performance of Booking Holdings in its upcoming release. The company's upcoming EPS is projected at $2.48, signifying a 11.71% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $7.19 billion, showing a 5.74% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.44 per share and a revenue of $29.4 billion, signifying shifts of +14.47% and +9.23%, respectively, from the last year.
Any recent changes to analyst estimates for Booking Holdings should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Booking Holdings holds a Zacks Rank of #3 (Hold).
In terms of valuation, Booking Holdings is currently trading at a Forward P/E ratio of 16.83. This denotes no noticeable deviation relative to the industry average Forward P/E of 16.83.
One should further note that BKNG currently holds a PEG ratio of 1.05. 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. BKNG's industry had an average PEG ratio of 1.03 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 106, placing it within the top 44% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.