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Booking Holdings Inc. (BKNG-Q) is recognized as a robust growth stock in the online travel booking sector, showcasing an impressive revenue growth rate of 9% annually over the past seven years. The company operates on a capital-light model, primarily taking commissions on bookings, leading to attractive operating margins of around 30%. With a significant dividend supported by a low payout ratio, increasing cash reserves, and ongoing share buybacks, BKNG demonstrates strong financial health. Experts express confidence in its future growth, anticipating robust earnings growth driven by the ongoing travel boom and strategic acquisitions. Despite its success, analysts note the competitive nature of the market, while suggesting that the stock is currently trading at fair valuations compared to its peers.
BOOK decided to be an agent only, so they take a commission on every transaction. Operating margins of 30%. Investors like the capital-light model, giving it a higher multiple between high 20s or almost 30x PE. Today though, PE in low 20s.
EXPE buys hotel rooms in bulk and then resells them; takes more risk and more capital. Operating margins of 10%. PE usually around 20x. PE today is in low teens. Though not as good a business, valuation discount is excessive. Better risk/reward.
BKNG has been an amazing compounding machine. The stock is up +21,000% in the past 20 years. It has managed its growth well, made excellent acquisitions, managed recessions and kept its balance sheet strong. We have followed the company since shares were $20 (now $4,700). Good growth is still expected and its free cash flow is starting to really grow ($8B+ now). Even with massive growth it has reduced its share count by nearly 40% in the past decade. There are always risks, but this is one of our favorite growth stocks and is not even that expensive at 26X earnings.
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The last quarter was good, with an 8% 'beat' on earnings. It is expected to show at least 15% earnings growth in 2025. It has a very strong balance sheet with no net debt. It is priced OK at 27X earnings. It is sensitive to the economy and interest rates, but we are comfortable with the outlook. We would be comfortable buying today.
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BKNG has done pretty well since that price target. All the engines for value creation have worked quite well recently, with high single-digit revenue growth and aggressive capital return policies. We expect BKNG will continue to do well in the near term and we would be comfortable revisiting BKNG again if it drops below $3900.
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Has owned this for nearly 25 years when it was Priceline.com. An asset-lite company, so few capital investments. Their success comes from relationships with European hotels, which are small and not big chains (as in the U.S.). BKNG now owns Kayak, Open Table among many. Connected Trips is their latest success. Trades below the market PE. He predicts $200 EPS in the next report, so growing rapidly. People continue to travel.
Very competitive marketplace. Down today on overwhelming concern about consumer spending and prospects for travel for the next 12 months. Better positioned than EXPE, because Expedia's multiple brands cause confusion.
Generative AI is a concern for the future, as it may circumvent the go-between status of BKNG and EXPE and provide a personalized travel experience.
BKNG is now trading at 20.4x times the forward P/E. In the 4Q-2023, BKNG’s revenue grew 18% to $4.8B, beating estimates of $4.7B and EPS was $32.00 beating estimates of $30.05, the results beat both top and bottom lines. The balance sheet is strong, with a net debt of $15B and net debt/EBITDA of 0.3x. Based on consensus estimates, sales are expected to grow by 9% over the next few years. Overall, a decent quarter, but some concern over Middle East bookings hurt sentiment. The company has been repurchasing shares aggressively in recent quarters and started to pay dividends for the very first time, which we like. The valuation here is not too expensive, and we think the drop may offer attractive entry points. It may face a E500 million fine for competitive pricing in Spain, but on its $120B market cap this is essentially just a cost of doing business and highlights its market dominance.
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They just reported, but shares fell. Gross bookings, revenue and adjusted EPS all beat. Some of these were record numbers, and they bear their peer, Expedia in some categories. But the market punished them for their dour guidance, particular the impact of the Israel-Hamas was. Booking's business is international, with only 13% of sales from the U.S. Trades at a high 17x 2024 PE.
Booking Holdings Inc. is a American stock, trading under the symbol BKNG-Q on the NASDAQ (BKNG). It is usually referred to as NASDAQ:BKNG or BKNG-Q
In the last year, 27 stock analysts published opinions about BKNG-Q. 9 analysts recommended to BUY the stock. 9 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Booking Holdings Inc..
Booking Holdings Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Booking Holdings Inc..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
27 stock analysts on Stockchase covered Booking Holdings Inc. In the last year. It is a trending stock that is worth watching.
On 2025-04-03, Booking Holdings Inc. (BKNG-Q) stock closed at a price of $4450.53.
The well known online travel booking platform has seen revenues grow 9% annually over the past 7 years. Its platform includes a broad range of accommodation, car rental, and air travel opportunities where margins continue to grow. Its dividend is backed by a payout ratio under 20%. Cash reserves are growing as the company buys back shares. We recommend setting a stop-loss at $3600, looking to achieve $5700 — upside potential of 19%. Yield 0.8%
(Analysts’ price target is $5707.34)