Why Booking Holdings (BKNG) is a Top Growth Stock for the Long-Term

Booking Holdings (BKNG) is highlighted as a top growth stock, despite its Zacks #3 (Hold) Rank, due to its 'A' Growth Style Score and 'B' VGM Score. Analysts project 18% year-over-year earnings growth for the current fiscal year, with 10 analysts raising fiscal 2025 estimates by $3.46 to $220.74 per share in the last 60 days. This outlook is reinforced by BKNG's historical average earnings surprise of +19.2%, positioning it as a notable consideration for growth-oriented investors.

Analysis

Booking Holdings (BKNG) presents a compelling case for growth-oriented investors, despite its neutral Zacks #3 (Hold) rank. The company's 'A' Growth Style Score is supported by a robust forecast for 18% year-over-year earnings growth in the current fiscal year. This positive outlook is reinforced by significant upward revisions in analyst expectations; over the last 60 days, 10 analysts have raised their fiscal 2025 earnings estimates, pushing the Zacks Consensus Estimate up by $3.46 to $220.74 per share. Furthermore, BKNG has a strong track record of outperformance, historically delivering an average positive earnings surprise of 19.2%. The 'B' grade for the composite VGM Score suggests a balanced profile, making the neutral 'Hold' rank appear conservative in light of the strong underlying fundamental momentum and positive sentiment from analysts.

Key Decisions for Investors

• Growth-focused investors should weigh the strong quantitative signals, such as the 18% projected earnings growth and 'A' Growth Score, as potentially more indicative of future performance than the neutral Zacks #3 'Hold' rating.
• Monitor the trend in analyst earnings revisions for fiscal 2025, as continued upward adjustments to the $220.74 consensus estimate would provide further validation for a long-term bullish thesis.
• Factor in the company's consistent history of beating earnings estimates by an average of 19.2%, which suggests a potential for upside to current forecasts, though the 'Hold' rank implies that a near-term catalyst may be needed to drive significant share price appreciation.