Booking Holdings (BKNG) Is Considered a Good Investment by Brokers: Is That True?
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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Booking Holdings (BKNG) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Booking Holdings currently has an average brokerage recommendation (ABR) of 1.63, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 32 brokerage firms. An ABR of 1.63 approximates between Strong Buy and Buy.Of the 32 recommendations that derive the current ABR, 21 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 65.6% and 6.3% of all recommendations.Brokerage Recommendation Trends for BKNGCheck price target & stock forecast for Booking Holdings here>>>The ABR suggests buying Booking Holdings, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.Should You Invest in BKNG?In terms of earnings estimate revisions for Booking Holdings, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $177.09.Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Booking Holdings. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Booking Holdings.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Booking Holdings Inc. (BKNG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Ausgewählte Hebelprodukte auf Booking
Mit Knock-outs können spekulative Anleger überproportional an Kursbewegungen partizipieren. Wählen Sie einfach den gewünschten Hebel und wir zeigen Ihnen passende Open-End Produkte auf Booking
Der Hebel muss zwischen 2 und 20 liegen
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Name | Hebel | KO | Emittent |
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Quelle: Zacks
Nachrichten zu Booking Holdings Inc Registered Shs
Analysen zu Booking Holdings Inc Registered Shs
Datum | Rating | Analyst | |
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08.08.2019 | Booking Outperform | Cowen and Company, LLC | |
08.08.2019 | Booking Buy | Deutsche Bank AG | |
08.08.2019 | Booking Overweight | Barclays Capital | |
21.05.2019 | Booking Buy | Needham & Company, LLC | |
19.03.2019 | Booking Market Perform | Telsey Advisory Group |
Datum | Rating | Analyst | |
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08.08.2019 | Booking Outperform | Cowen and Company, LLC | |
08.08.2019 | Booking Buy | Deutsche Bank AG | |
08.08.2019 | Booking Overweight | Barclays Capital | |
21.05.2019 | Booking Buy | Needham & Company, LLC | |
19.03.2019 | Booking Market Perform | Telsey Advisory Group |
Datum | Rating | Analyst | |
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22.06.2018 | Booking Hold | The Benchmark Company | |
03.04.2017 | Pricelinecom Neutral | MoffettNathanson | |
31.03.2016 | Pricelinecom Sector Weight | Pacific Crest Securities Inc. | |
10.11.2015 | Pricelinecom Equal Weight | Barclays Capital | |
06.08.2015 | Pricelinecom Hold | Deutsche Bank AG |
Datum | Rating | Analyst | |
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27.03.2012 | Pricelinecom reduce | Nomura | |
11.10.2011 | Pricelinecom reduce | Nomura | |
18.08.2011 | Pricelinecom reduce | Nomura | |
04.06.2010 | priceline.com "below average" | Caris & Company, Inc. |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für Booking Holdings Inc Registered Shs nach folgenden Kriterien zu filtern.
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