In the latest trading session, Booking Holdings (BKNG) closed at $4,164.15, marking a -1.9% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 1.57%. At the same time, the Dow lost 0.84%, and the tech-heavy Nasdaq lost 2.15%.
Heading into today, shares of the online booking service had lost 4.64% over the past month, outpacing the Retail-Wholesale sector's loss of 11.13% and the S&P 500's loss of 12.16% in that time.
The investment community will be paying close attention to the earnings performance of Booking Holdings in its upcoming release. The company is slated to reveal its earnings on April 29, 2025. In that report, analysts expect Booking Holdings to post earnings of $17.24 per share. This would mark a year-over-year decline of 15.45%. Simultaneously, our latest consensus estimate expects the revenue to be $4.59 billion, showing a 4.05% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $209.63 per share and revenue of $25.16 billion. These totals would mark changes of +12.04% and +5.97%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Booking Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 0.04% lower. Currently, Booking Holdings is carrying a Zacks Rank of #3 (Hold).
In the context of valuation, Booking Holdings is at present trading with a Forward P/E ratio of 20.25. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 20.25.
We can also see that BKNG currently has a PEG ratio of 1.52. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Commerce industry held 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 63, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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