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Why Booking Holdings (BKNG) Dipped More Than Broader Market Today

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Booking Holdings (BKNG - Free Report) ended the recent trading session at $4,764.89, demonstrating a -1.11% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.29%. On the other hand, the Dow registered a loss of 0.32%, and the technology-centric Nasdaq decreased by 0.5%.

Shares of the online booking service have depreciated by 5.45% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 3.53% and the S&P 500's gain of 2.52%.

Investors will be eagerly watching for the performance of Booking Holdings in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 20, 2025. The company's earnings per share (EPS) are projected to be $35.71, reflecting a 11.59% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.2 billion, indicating an 8.65% increase compared to the same quarter of the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Booking Holdings. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 past month, the Zacks Consensus EPS estimate has shifted 0.27% downward. Booking Holdings presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Booking Holdings is currently trading at a Forward P/E ratio of 22.96. This denotes a premium relative to the industry's average Forward P/E of 21.84.

Investors should also note that BKNG has a PEG ratio of 1.64 right now. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.17.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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