BKNG - Booking Holdings: Margins Can Stay Strong Even If Revenues Slow Down

2024-01-30 09:44:41 ET

Summary

• Booking Holdings stock's flat market performance compared to a slight upside to the S&P 500 in January could indicate that consumer discretionary stocks are falling out of favor on slowdown fears.
• Some softening in sales growth is already visible and can become even more apparent this year. But not all macros are stacked against the company.
• Continued softening in inflation and a softening in interest rates can boost margins further, improving the attractiveness of its market multiples.

After a stellar last year, which saw online travel bookings provider Booking Holdings's (BKNG) price rise by 76%, January 2024 has been underwhelming for it with the stock remaining essentially flat. But in comparison, the S&P 500 Consumer Discretionary index has declined by 2.85% during this time even as the S&P 500 ( SP500 ) index has seen a small uptick of 2.5%....

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