Booking stock was downgraded to neutral, as analysts expect travel growth to "normalize" after a post-pandemic surge.
Booking Holdings rides on growing momentum in the leisure travel market on the back of its efforts to strengthen portfolio.
Meta Platforms and Booking Holdings are dominant in their industries, offering strong growth, profitability, and shareholder returns, making them attractive buys during market downturns. .Earnings season often leads to market overreactions, presenting opportunities to buy high-quality stocks like Meta and Booking at discounted valuations. Despite short-term market fears, both Meta and Booking have strong fundamentals, making them excellent long-term investments with potential for double-digit returns.
The market rally has been significant since the August lows, with the S&P 500 up 9%, Nasdaq up 11%, and Dow Jones gaining over 2,000 points. Booking, Chipotle, and Amazon are still worth buying due to their growth potential, strong fundamentals, and attractive valuations despite recent market gains. Booking.com offers a discount opportunity, Chipotle benefits from automation and high-income customers, and Amazon's diversified business is firing on all cylinders.
Recently, Zacks.com users have been paying close attention to Booking Holdings (BKNG). This makes it worthwhile to examine what the stock has in store.
Booking Holdings Inc. (BKNG, Financial) is arguably the world's most extensive online travel company. It has robust momentum from high fundamentals following the pandemic that is expected to continue steadily throughout the next two years.
BKNG is a long-term growth idea due to a secular trend in travel prioritizing experiences over material possessions, especially among Gen Z and Millennials. In an online travel market growing at 6% annually over the long term, BKNG is demonstrating long-term growth rates of around 10% and more across all metrics. BKNG is valued at a 22 TTM P/E and a 2027 Forward P/E of 12. This attractive valuation adequately accounts for competitive, geopolitical, and regulatory risks, among others.
In early June, Morgan Stanley (NYSE: MS ) published a report on travel industry trends. The results confirm what many investors believe when it comes to the best travel stocks.
Booking Holdings (BKNG) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Shares of Booking have corrected nearly 20% after reporting Q2 results, echoed as well by Airbnb's weak Q2 earnings print. In my view, the selloff is overdone. Upgrading Booking back up to a neutral rating. Despite decelerating bookings growth, there's a possibility that travelers are merely shortening bookings lead times rather than foregoing trips overall.
Booking Holdings shares are having a volatile year due to industry slowdown concerns. The second quarter results were worrisome when compared to Airbnb. Valuation is low heading into a deceleration period, offering potential upside for long-term investors.
Booking Holdings' (BKNG) second-quarter results reflect strength in its merchant business.