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Norwalk, Connecticut-based Booking Holdings Inc. (BKNG) provides online and traditional travel and restaurant reservations and related services. With a market cap of $128.9 billion, Booking Holdings’ operations span the Americas, Europe, Asia-Pacific, the Middle East, and Africa.
The travel services giant has marginally lagged behind the broader market over the past year. Over the past 52 weeks, BKNG gained 27.6% compared to the S&P 500 Index’s ($SPX) 27.7% returns. In 2024, BKNG is up 9.4% versus SPX’s 18% gains on a YTD basis.
Narrowing the focus, BKNG has outperformed the ETFMG Travel Tech ETF’s (AWAY) 9.1% returns over the past 52 weeks and a 2.2% decline in 2024.
Shares of Booking Holdings plunged 9.2% following the release of its Q2 earnings on Aug. 1. However, the company’s revenue surged 7.3% year over year to $5.9 billion, exceeding Wall Street’s expectations. Moreover, the company’s net income surged 17.9% to $1.5 billion, and its EPS of $41.90 surpassed the consensus estimates by 6.4%. The primary reason for the stock price decline was the market-wide havoc created by the release of unemployment data by the Bureau of Labor Statistics. Nevertheless, the stock rebounded in subsequent trading sessions.
For the current fiscal year, ending in December, analysts expect Booking Holdings to report an EPS growth of 16.3% to $177.09. Moreover, the company’s earnings surprise history is robust. It surpassed the consensus EPS estimates in each of the past four quarters.
Among the 31 analysts covering the BKNG stock, the consensus rating is a “Strong Buy.” That’s based on 21 “Strong Buy” ratings, two “Moderate Buys,” and eight “Holds.”
This configuration is slightly more bullish than two months ago when 20 analysts recommended “Strong Buys.”
On Aug. 2, RBC Capital analyst Brad Erickson maintained a “Buy” rating with a price target of $3,900.
BKNG’s mean price target of $4,094.28 represents a premium of 5.5% from current price levels. The Street-high target of $4,650 indicates a potential upside of 19.8%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
