Booking Holdings (BKNG – Free Report) closed at $4,903.85 in the latest trading session, marking a -0.44% move from the prior day. The stock’s change was less than the S&P 500’s daily gain of 1.26%. On the other hand, the Dow registered a gain of 0.8%, and the technology-centric Nasdaq increased by 1.77%.
The online booking service’s shares have seen a decrease of 6.86% over the last month, not keeping up with the Retail-Wholesale sector’s loss of 1.93% and the S&P 500’s loss of 2.82%.
The investment community will be closely monitoring the performance of Booking Holdings in its forthcoming earnings report. The company’s upcoming EPS is projected at $35.89, signifying a 12.16% increase compared to the same quarter of the previous 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.
Investors should also note any recent changes to analyst estimates for Booking Holdings. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 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 0.09% lower. Booking Holdings is currently a Zacks Rank #3 (Hold).
In the context of valuation, Booking Holdings is at present trading with a Forward P/E ratio of 23.41. This valuation marks a premium compared to its industry’s average Forward P/E of 20.88.
It’s also important to note that BKNG currently trades at a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. By the end of yesterday’s trading, the Internet – Commerce industry had an average PEG ratio of 1.21.
The Internet – Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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