#7 - Booking Holdings (NASDAQ:BKNG)
Booking Holdings Inc. (NASDAQ: BKNG) may not be the first name that comes to mind when you think about AI plays. But, the company has introduced some AI tools into its KAYAK travel search engine. The goal is to help travelers make decisions faster, easier, and more intuitively.
The effect of these AI tools may be hard to quantify. However, the reason that Booking Holdings is likely to outperform the market is much simpler. Travel demand may be slowing, but it hasn't abated. Consumers, at least once they get above a certain income threshold, are still prioritizing travel.
And if the Federal Reserve lowers interest rates, that will be a tailwind for BNKG stock in the second half of the year. One reason is that lower interest rates will likely spur hiring activity, which will boost consumer confidence. That combination is almost always bullish for travel plans.
Some investors will choke on the company's share price, which is over $3,400 as of March 5, 2024. However, the stock only trades at 19x earnings and is projecting 17x earnings growth in the next 12 months.
About Booking
Booking Holdings Inc, formerly The Priceline Group Inc, is a provider of travel and restaurant online reservation and related services. The Company, through its online travel companies (OTCs), connects consumers wishing to make travel reservations with providers of travel services across the world. It offers consumers an array of accommodation reservations (including hotels, bed and breakfasts, hostels, apartments, vacation rentals and other properties) through its Booking.com, priceline.com and agoda.com brands.
Read More - Current Price
- $4,970.98
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 22 Buy Ratings, 10 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $4,749.83 (4.4% Downside)
Investors will continue to plow money into technology stocks. However, a reason other than performance to consider moving beyond the Magnificent Seven is diversification. That's why this list includes stocks that cover a variety of sectors.
Yes, there are still many mega cap names on this list. But growth-oriented investors know that the AI-fueled growth in big tech stocks won't last forever. Consider Meta Platforms Inc. (NASDAQ: META) and Amazon.com Inc. (NASDAQ: AMZN). Both companies are projected to post over 15% earnings growth in 2024. However, analysts believe much of that growth is already priced into the respective stocks.
Then again, many feel the same about Nvidia, yet it made the list. The list isn't an exact science, but with the help of the MarketBeat Stock Screener, it shows companies expected to deliver strong earnings growth that will likely fuel further stock price gains in the coming year.
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