Booking Holdings (BKNG) ended the recent trading session at $4,774.33, demonstrating a +1.11% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.53% gain on the day. Elsewhere, the Dow gained 0.38%, while the tech-heavy Nasdaq added 0.25%.
The online booking service's stock has dropped by 4.96% in the past month, falling short of the Retail-Wholesale sector's gain of 5.57% and the S&P 500's gain of 1.24%.
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 February 20, 2025. The company is forecasted to report an EPS of $35.71, showcasing a 11.59% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $5.19 billion, reflecting an 8.48% rise from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Booking Holdings. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.77% downward. Booking Holdings is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Booking Holdings has a Forward P/E ratio of 22.61 right now. This valuation marks a premium compared to its industry's average Forward P/E of 21.79.
It's also important to note that BKNG currently trades at a PEG ratio of 1.61. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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