Booking Holdings (BKNG) Rises Higher Than Market: Key Facts

In the latest close session, Booking Holdings (BKNG) was up +2% at $199.60. The stock's change was more than the S&P 500's daily gain of 0.46%. Meanwhile, the Dow gained 0.56%, and the Nasdaq, a tech-heavy index, added 0.45%.

The online booking service's stock has climbed by 0.73% in the past month, exceeding the Retail-Wholesale sector's loss of 3.73% and lagging the S&P 500's gain of 2%.

Market participants will be closely following the financial results of Booking Holdings in its upcoming release. The company is predicted to post an EPS of $4.46, indicating a 12.06% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.57 billion, indicating a 6.27% growth compared to the corresponding quarter of the prior year.

BKNG's full-year Zacks Consensus Estimates are calling for earnings of $10.5 per share and revenue of $29.28 billion. These results would represent year-over-year changes of +15.13% and +8.77%, respectively.

It is also important to note the recent changes to analyst estimates for Booking Holdings. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 0.49% higher. Booking Holdings currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Booking Holdings is presently being traded at a Forward P/E ratio of 18.65. For comparison, its industry has an average Forward P/E of 16.88, which means Booking Holdings is trading at a premium to the group.

Investors should also note that BKNG has a PEG ratio of 1.21 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 1.21.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 102, finds itself in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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