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Valued at a market cap of $128.9 billion, Booking Holdings Inc. (BKNG) is a leading player in the online travel and restaurant reservation industry. The Norwalk, Connecticut-based company operates a portfolio of brands, including Booking.com, Priceline, and Agoda, offering a comprehensive range of travel-related services globally.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Booking Holdings fits this criterion perfectly, exceeding the mark. Booking Holdings stands out for its extensive global reach, operating in about 200 countries and offering over 1 billion room nights, 74 million rental car days, and 36 million airplane tickets annually through its suite of brands.
However, the online travel agency has declined 8.3% from its 52-week high of $4,144.32, reached in July. Over the past three months, shares of Booking Holdings have experienced a slight decline, yet they have performed better compared to the broader Amplify Travel Tech ETF (AWAY), which faced a more pronounced decrease of 5.6% during the same timeframe.
Longer term, BKNG shares have risen 7.1% on a YTD basis, outpacing AWAY's 4.5% loss. Furthermore, Booking Holdings' shares have surged almost 22% over the past 52 weeks, compared to AWAY's 2.8% gains over the same time frame.
To validate its bullish trend, BKNG has consistently traded above its 200-day moving average since last year and has mostly remained above its 50-day moving average, despite some fluctuations.
BKNG has outperformed over the past year due to a strong recovery in travel demand and its successful expansion into non-hotel offerings like flights and rental cars. However, despite beating Q2 revenue and profit estimates on Aug. 1, the stock dropped 9.2% the following day due to the company's forecast of slower room night growth for Q3. Additionally, the shrinking booking window raised concerns about reduced advance bookings, indicating potential revenue uncertainty moving forward.
Nevertheless, to underscore the stock's outperformance, its rival, Expedia Group, Inc. (EXPE) has lagged behind BKNG, with EXPE falling 11.1% on a YTD basis. However, over the past year, EXPE's return of 23.1% outpaced BKNG's gain over the same period.
Due to BKNG’s strong price action over the past year, analysts are optimistic, with a consensus rating of "Strong Buy" from 31 analysts. The mean price target of $4,094.28 suggests only 7.8% upside potential from current levels.
On the date of publication, Sohini Mondal 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.
