Booking Holdings (BKNG) closed the latest trading day at $4,556.84, indicating a -0.65% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.79%. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 0.64%.
The online booking service's stock has climbed by 2.71% in the past month, exceeding the Retail-Wholesale sector's loss of 3.65% and the S&P 500's loss of 3.56%.
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 April 29, 2025. In that report, analysts expect Booking Holdings to post earnings of $17 per share. This would mark a year-over-year decline of 16.63%. In the meantime, our current consensus estimate forecasts the revenue to be $4.59 billion, indicating a 4.01% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $206.93 per share and a revenue of $25.07 billion, signifying shifts of +10.6% and +5.61%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 witnessed a 1.33% decrease. Booking Holdings is currently a Zacks Rank #3 (Hold).
In terms of valuation, Booking Holdings is currently trading at a Forward P/E ratio of 22.17. This denotes no noticeable deviation relative to the industry's average Forward P/E of 22.17.
It's also important to note that BKNG currently trades at a PEG ratio of 1.63. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 64, putting it in the top 26% 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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This article originally published on Zacks Investment Research (zacks.com).
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