Booking Holdings (BKNG) Declines More Than Market: Some Information for Investors

Booking Holdings (BKNG) closed at $180.30 in the latest trading session, marking a -6.72% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.32%.

The stock of online booking service has fallen by 9.2% in the past month, lagging the Retail-Wholesale sector's loss of 5.84% and the S&P 500's loss of 0.36%.

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 $4.46, signifying a 12.06% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.57 billion, indicating a 6.27% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.5 per share and revenue of $29.28 billion. These totals would mark changes of +15.13% and +8.77%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for Booking Holdings. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.25% higher. Booking Holdings is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Booking Holdings is holding a Forward P/E ratio of 18.42. For comparison, its industry has an average Forward P/E of 17.1, which means Booking Holdings is trading at a premium to the group.

We can also see that BKNG currently has a PEG ratio of 1.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.23.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 158, positioning it in the bottom 36% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

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