Why Booking Holdings (BKNG) Dipped More Than Broader Market Today

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Why Booking Holdings (BKNG) Dipped More Than Broader Market Today

Booking Holdings (BKNG) closed at $155.87 in the latest trading session, marking a -1.12% move from the prior day. This change lagged the S&P 500's 0.22% loss on the day. At the same time, the Dow lost 0.66%, and the tech-heavy Nasdaq lost 0.22%.

Shares of the online booking service witnessed a loss of 12.57% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 3.19%, and the S&P 500's gain of 1.4%.

The upcoming earnings release of Booking Holdings will be of great interest to investors. The company's earnings report is expected on November 3, 2026. On that day, Booking Holdings is projected to report earnings of $4.48 per share, which would represent year-over-year growth of 12.56%. Simultaneously, our latest consensus estimate expects the revenue to be $9.56 billion, showing a 6.17% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $10.49 per share and a revenue of $29.26 billion, signifying shifts of +15.02% and +8.7%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Booking Holdings. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 0.17% higher. Booking Holdings presently features a Zacks Rank of #3 (Hold).

In the context of valuation, Booking Holdings is at present trading with a Forward P/E ratio of 15.03. This valuation marks a premium compared to its industry average Forward P/E of 14.95.

Meanwhile, BKNG's PEG ratio is currently 0.98. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.19.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 187, finds itself in the bottom 24% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow BKNG in the coming trading sessions, be sure to utilize Zacks.com.

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

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