Allan Tong’s Discover Picks Though BKNG pays no dividend and trades at 244x earnings, the stock boasts an operating margin of 13.6% and a profit margin of 4.06% while its ROE stands at 7.15%. That beats its rival Expedia at -9.39%, -10.65% and -59.16%. Further, stock performance has been encouraging with BKNG beating earnings in the last three of four quarters. Of course, any stock in the travel sector will get hammered on any Omicron news. On Black Friday, shares tanked by 7.2%. Again, consider those buying opportunities. Read Travel Stocks for 2022 + 1 Low Risk ETF for our full analysis.
World's largest travel agency by revenue. In over 220 countries. With vaccines accelerating worldwide especially in kids, and anti-viral pills, could boost travel well beyond pre-pandemic levels as pent-up demand will create "revenge travel". Earnings next year should surpass pre-pandemic levels. Stock's come off, so this is an opportunity. No dividend. (Analysts’ price target is $2758.81)
This is a tech, travel and reopening giant that will benefit as more countries allow their people to travel, which will unleash pent-up demand. It's a large travel company that owns Booking.com, Kayak.com, Priceline.com and Rentalcars.com. Use BKNG to book plane tickets, hotel rooms and rental cars, often at a discount. Like all travel stocks, BKNG was hammered by Covid, but will benefit from a strong bounceback. Though operating at a $311 million loss last quarter (all figures in USD), BKNG did hold $12 billion in cash, just slightly below its $14 billion debt. Americans are traveling like mad, what one analyst has termed “travel revenge,” but the States accounts for less than a third of BKNG's business. Rather, overseas, particularly Europe, is BKNG's bread and butter, and Europe is starting to reopening beyond the U.K. The street has eight buys and eights holds on the stock at a US$2,581 price target. Caveats: Booking Holdingspays no dividend, and shares are floating under US$2,200 these days.
World's largest by sales. Tremendous pent-up demand for travel, which will be unleashed as vaccinations rise and Covid cases decline. Revenues may even surpass pre-pandemic levels. No dividend. (Analysts’ price target is $2521.37)
(A Top Pick Jan 30/20, Up 18%) Continues to buy. Growth from emerging markets over the next 10 years is quite strong. Normalization of activity will bring revenue to pre-pandemic levels by 2022. Diversified.
(A Top Pick Aug 22/19, Down 3%) An online travel marketing machine without fixed costs. Adversely affected by the pandemic. He sold. Market is building up the price on hopes of a vaccine and a recovering economy. Likes the concept, but not the right time.
We don't know the magnitude of coronavirus effect. High growth name. Largest online company. Likes it. Very sold off. 16x earnings, with 13% growth rate. Stock's trading in a worst case scenario. A bit concerning that it's below 200-day moving average. Layer in, don't take a full position.
(A Top Pick Jan 22/19, Up 9%) They're in a very competitive space with many booking vacations online. Also, the virus has hit them. But margins in this sector will be tight.
In general, taking advantage of recent downturn. Largest online travel agency. Operate a number of brands. 17x earnings, 15% growth rate. PEG ratio of 1.1. May still be choppiness ahead, but a good opportunity. Stock is oversold. No dividend. (Analysts’ price target is $2150.19)
(A Top Pick Jan 22/19, Up 10%) Competition has since gotten fierce, so he sold it. It's still a good sector because of growing demand from Asian tourists. He made some money.
Growth-oriented. Trading at 16-17x earnings, with a 16% growth rate, so PEG is cheap. But can be affected by global macro picture, so be somewhat careful. Valuation is good for type of growth you're looking at right now.
Former priceline.com. It is not cheap but their earnings are over $100 per share. That is below 20 times but growing quickly. (Analysts’ price target is $2085.37)
(A Top Pick Jun 07/18, Down 13%) The former PriceLine company. He still likes this holding. It has been one of the most successful NYSE listing in the past two decades. He originally bought it for under $20 over 15 years ago. The company will make $100 per share this year. It trades at about 18 times earnings, in line with how fast revenues are growing. It continues to expand and has thousands of property listings, including Europe. He would continue to hold it.
Booking Holdings Inc. (BKNG) Frequently Asked Questions
What is Booking Holdings Inc. stock symbol?
Booking Holdings Inc. is a American stock, trading under the symbol BKNG (previously BKNG-Q on Stockchase) on the NASDAQ (BKNG). It is usually referred to as NASDAQ:BKNG or BKNG