Booking Holdings (BKNG) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest market close, Booking Holdings (BKNG) reached $4,019.80, with a -0.21% movement compared to the previous day. This move lagged the S&P 500's daily gain of 1.7%. On the other hand, the Dow registered a gain of 1.26%, and the technology-centric Nasdaq increased by 2.51%.
Coming into today, shares of the online booking service had gained 7.77% in the past month. In that same time, the Retail-Wholesale sector gained 4.02%, while the S&P 500 gained 1.27%.
The upcoming earnings release of Booking Holdings will be of great interest to investors. The company's earnings per share (EPS) are projected to be $77.68, reflecting a 7.41% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.62 billion, up 3.76% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $176.92 per share and a revenue of $22.95 billion, signifying shifts of +16.23% and +7.4%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Booking Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 moved 0.1% lower. Booking Holdings is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Booking Holdings is currently trading at a Forward P/E ratio of 22.77. This indicates a premium in contrast to its industry's Forward P/E of 22.72.
Also, we should mention that BKNG has a PEG ratio of 1.23. 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 1.05 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Booking Holdings Inc. (BKNG) : Free Stock Analysis Report