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Booking Holdings (BKNG) Exceeds Market Returns: Some Facts to Consider
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Booking Holdings (BKNG - Free Report) closed the most recent trading day at $4,119.09, moving +0.76% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.
Heading into today, shares of the online booking service had gained 3.41% over the past month, outpacing the Retail-Wholesale sector's gain of 2.58% and lagging the S&P 500's gain of 3.82% in that time.
The upcoming earnings release of Booking Holdings will be of great interest to investors. The company's earnings report is expected on August 1, 2024. The company's upcoming EPS is projected at $39.22, signifying a 4.25% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.78 billion, up 5.76% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $178.55 per share and a revenue of $23.09 billion, demonstrating changes of +17.3% and +8.05%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Booking Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 22.9. This represents a premium compared to its industry's average Forward P/E of 22.35.
Also, we should mention that BKNG has a PEG ratio of 1.22. 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 1.08 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 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Booking Holdings (BKNG) Exceeds Market Returns: Some Facts to Consider
Booking Holdings (BKNG - Free Report) closed the most recent trading day at $4,119.09, moving +0.76% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.64%. At the same time, the Dow added 1.85%, and the tech-heavy Nasdaq gained 0.2%.
Heading into today, shares of the online booking service had gained 3.41% over the past month, outpacing the Retail-Wholesale sector's gain of 2.58% and lagging the S&P 500's gain of 3.82% in that time.
The upcoming earnings release of Booking Holdings will be of great interest to investors. The company's earnings report is expected on August 1, 2024. The company's upcoming EPS is projected at $39.22, signifying a 4.25% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $5.78 billion, up 5.76% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $178.55 per share and a revenue of $23.09 billion, demonstrating changes of +17.3% and +8.05%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Booking Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. 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 22.9. This represents a premium compared to its industry's average Forward P/E of 22.35.
Also, we should mention that BKNG has a PEG ratio of 1.22. 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 1.08 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 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.