In the latest market close, Booking Holdings (BKNG Quick QuoteBKNG – Free Report) reached $2,812.92, with a -0.79% movement compared to the previous day. This move was narrower than the S&P 500’s daily loss of 1.43%. Elsewhere, the Dow saw a downswing of 0.32%, while the tech-heavy Nasdaq depreciated by 2.43%.
Shares of the online booking service have depreciated by 7.36% over the course of the past month, underperforming the Retail-Wholesale sector’s loss of 2.31% and the S&P 500’s loss of 1.55%.
Market participants will be closely following the financial results of Booking Holdings in its upcoming release. The company plans to announce its earnings on November 2, 2023. The company’s earnings per share (EPS) are projected to be $67.85, reflecting a 27.95% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.23 billion, indicating a 19.47% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $143.79 per share and a revenue of $21.08 billion, demonstrating changes of +44.03% and +23.36%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Booking Holdings. Such recent modifications usually signify the changing landscape of near-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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.34% lower. At present, Booking Holdings boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Booking Holdings is currently trading at a Forward P/E ratio of 19.72. This denotes a premium relative to the industry’s average Forward P/E of 19.58.
Investors should also note that BKNG has a PEG ratio of 0.88 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. By the end of yesterday’s trading, the Internet – Commerce industry had an average PEG ratio of 0.73.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.