Here's Why Booking Holdings (BKNG) Fell More Than Broader Market

In the latest close session, Booking Holdings (BKNG) was down 2.32% at $177.05. This change lagged the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%. Coming into today, shares of the online booking service had gained 7.65% in the past month. In that same time, the Retail-Wholesale sector lost 5.64%, while the S&P 500 lost 1.4%. Analysts and investors alike will be keeping a close eye on the performance of Booking Holdings in its upcoming earnings disclosure. On that day, Booking Holdings is projected to report earnings of $2.47 per share, which would represent year-over-year growth of 11.26%. At the same time, our most recent consensus estimate is projecting a revenue of $7.19 billion, reflecting a 5.74% rise from the equivalent quarter last year. Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.44 per share and revenue of $29.4 billion. These totals would mark changes of +14.47% and +9.23%, respectively, from last year. It's also important for investors to be aware of any recent modifications to analyst estimates for Booking Holdings. Recent revisions tend to reflect the latest near-term business trends. 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. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Booking Holdings currently has a Zacks Rank of #3 (Hold). From a valuation perspective, Booking Holdings is currently exchanging hands at a Forward P/E ratio of 17.36. This signifies no noticeable deviation in comparison to the average Forward P/E of 17.36 for its industry. We can also see that BKNG currently has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.06 based on yesterday's closing prices. The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 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. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks