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Based in Norwalk, Connecticut, Booking Holdings Inc. (BKNG) is a leader in online travel and hospitality services, operating brands like Booking.com, Priceline, Agoda, Kayak, and OpenTable. Valued at a market cap of $160.7 billion, the company's travel-related offerings cover hotel rooms, airline tickets, rental cars, vacation packages, cruises, 'things to do' at customer destinations, and travel insurance.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and BKNG fits the label perfectly, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the travel services industry. The company’s strengths lie in its vast global network, data-driven pricing strategies, and advanced AI-powered booking algorithms, which enhance customer experience and maximize conversions. The company benefits from strong brand recognition, a diverse portfolio spanning hotels, flights, and rental cars, and a scalable digital platform.
This travel services giant has fallen 8.2% from its 52-week high of $5,337.24, achieved on Dec. 12, 2024. It has declined 6.6% over the past three months, outpacing the broader Nasdaq Composite’s ($NASX) 7.4% downtick over the same time frame.
In the longer term, BKNG has rallied 41.5% over the past 52 weeks, considerably outpacing NASX’s 12.8% return. Moreover, on a YTD basis, shares of BKNG are down 1.4%, compared to NASX’s 5.3% decline over the same time frame.
To confirm its bullish trend, BKNG has been trading above its 200-day moving average since the past year, with some fluctuations. The stock has remained above its 50-day moving average since mid-February.
Despite delivering better-than-expected Q4 results, Booking Holdings’ stock saw a slight dip following its Feb. 20 earnings release. The company reported adjusted EPS of $41.55 and revenue of $5.5 billion, exceeding expectations. Earnings surged 29.8% year-over-year, while revenue climbed 14.4%, driven by strong growth in gross bookings and growing demand for alternative accommodations. Additionally, operating income rose by a massive 183.9%, supported by a 10.4% reduction in operating expenses, reflecting BKNG’s effective cost-management strategies.
BKNG has outpaced its rival, Trip.com Group Limited’s (TCOM) 39.4% gain over the past 52 weeks and 13.6% decline on a YTD basis.
Given BKNG’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 35 analysts covering it, and the mean price target of $5,610.83 suggests a notable 14.5% premium to its current levels.
