Valued at a market cap of $124.8 billion, Booking Holdings Inc. (BKNG) is one of the world’s largest online travel and restaurant reservation companies. Headquartered in Norwalk, Connecticut, the company operates a global portfolio of travel platforms that connect consumers with accommodations, flights, rental cars, vacation packages, and dining experiences.
This travel services company has considerably trailed behind the broader market over the past 52 weeks. Shares of BKNG have declined 24.6% over this time frame, while the broader S&P 500 Index ($SPX) has gained 27.9%. Moreover, on a YTD basis, the stock is down 24.8%, compared to SPX’s 9.2% rise.
Narrowing the focus, BKNG has also underperformed the State Street Consumer Discretionary Select Sector SPDR ETF (XLY), which gained 12.1% over the past 52 weeks and dropped marginally on a YTD basis.
On Apr. 28, BKNG shares dipped 2.3% after the company released its FY2026 Q1 earnings. Although Booking Holdings reported stronger-than-expected earnings and revenue growth, driven by resilient global travel demand, higher gross bookings, and expanding margins, investors remained cautious about management’s conservative forward guidance amid ongoing macroeconomic and geopolitical uncertainties.
Its revenue rose 16% year over year to $5.53 billion. Its adjusted EPS improved 14% year over year to $1.14, while gross travel bookings increased 15% to $53.80 billion, supported by strong international travel trends, growth in alternative accommodations, and continued momentum in connected trip offerings, such as flights, attractions, and airport taxis.
For fiscal 2026, ending in December, analysts expect BKNG’s EPS to grow 14.5% year over year to $10.44. The company’s earnings surprise history is promising. It topped the consensus estimates in each of the last four quarters.
Among the 37 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on 25 “Strong Buy,” two "Moderate Buy,” and 10 "Hold” ratings.
The configuration is more bearish than it was a month ago, with 26 analysts suggesting a “Strong Buy” rating.
On April 30, Argus analyst John Staszak raised the price target on Booking Holdings to $205 from $188 while maintaining a “Buy” rating, citing stronger-than-expected first-quarter results, robust margins, and management’s conservative guidance as signs of continued business strength.
The mean price target of $223.48 suggests a 38.8% potential upside from the current levels, while its Street-high price target of $298 suggests an ambitious 85% potential upside from the current levels.
On the date of publication, Kritika Sarmah 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.
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