The Rise of Revenge Travel

[View in browser]( [The Juice Logo] Proprietary Data Insights Financial Pros’ Top Travel Services Stock Searches in the Last Month Rank Name Searches #1 'Booking Holdings Inc 223 #2 'Tripadvisor Inc 24 #3 'Expedia Group Inc 12 #4 'Trip.com Group Ltd 3 #5 'Makemytrip Ltd 2 #ad [Subscriber Exclusive: Free Q1 Report On Top Stocks]( Brought to you by [The Alt]( [Markets are volatile, stay on top of Alternative Investments like Real Estate, Private Equity]( [ The Alt - Markets are volatile, stay on top of Alternative Investments like Real Estate, Private Equity]( In this market, it’s necessary to know all the possible moves! We heard, and we’ve hand-curated a newsletter with credible Alternative Investment articles and videos just for you! [Sign up for FREE now]( The Rise of Revenge Travel Revenge travel…a phenomenon borne from the frustration of Covid lockdowns. People want to make up for lost time, to see the world. It’s helped airline demand skyrocket, hotels push reservations out months in advance, and shares of Booking Holdings (BKNG) gain almost 40% year-to-date. In fact, financial pros began searching for this stock in earnest starting in mid-June, as our TrackStar data illustrates below. [Pageviews] After such a huge run this year, we wondered whether it’s worth scooping up shares now or waiting for a pullback. To answer this, we needed to give BKNG some economic context. Booking Holdings’ Business Booking Holdings Inc., one of the world's largest online travel companies, might be a familiar name to travel buffs, food lovers, or car rental users. The company’s 21,000 employees cater to travel needs and dining experiences in over 220 countries and territories. The company's portfolio comprises well-known brands, including Booking.com, KAYAK, Priceline, Agoda, Rentalcars.com, and OpenTable. Services provided under these brand umbrellas range from hotel room bookings, airline ticket reservations, rental cars, vacation packages, cruises, and dinner reservations to 'things to do' at customer destinations. And as if that wasn't enough, they also offer travel insurance. BKNG boasts agreements with an extensive list of hotels, airlines, cruise ships, transport companies, and vacation providers, allowing them to accept bookings on their behalf, providing customers with a myriad of options to choose from. Their revenue reporting segments are divided into two main categories, both with revenues split fairly evenly: - Agency - Includes brands like Booking.com, Agoda, Rentalcars.com, and KAYAK, and represents the commissions earned from facilitating reservations for travel products and services. - Merchant - Encompasses Priceline.com and OpenTable. This segment reflects revenues earned where the Company acts as the merchant of record. Financials [Financials] Source: Stock Analysis Booking Holdings' recent first quarter 2023 financial results painted a rosy picture. The company achieved all-time quarterly highs with 274 million room nights and gross bookings of $39.4 billion, reflecting YoY growth rates of 38% and 44%, respectively. Total revenues for the first quarter reached $3.8 billion, a 40% increase from the prior-year quarter, with net income doubling to $1.4 billion. This impressive performance can be attributed to robust leisure travel demand and an extending booking window, notably in Europe and the U.S. Operating cash flow is at an all-time high and almost $200 per share of free cash flow. Plus, they hold more cash than total debt. Valuation [Valuation] Source: Seeking Alpha Despite the recent surge in revenue growth, the P/E multiples aren’t as high as expected, nor is the price-to-cash flow ratio. Competitors like Tripadvisor (TRIP) and Expedia (EXPE) have better price-to-cash flow ratios, while one has a higher P/E ratio and the other lower. Then you have Trip.com (TCOM), and Makemytrip (MMYT), which have worse ratios in both categories. Growth [Growth] Source: Seeking Alpha Despite BKNG landing in the middle on valuation, it’s got some of the best revenue, EBITDA, and earnings growth looking backward and forward, implying it’s more consistent in its results. Profitability [Profit] Source: Seeking Alpha It’s also surprising to see BKNG with margins so much wider than any of its peers. That’s helped it produce some incredible returns on assets, equity, and total capital. Our Opinion 8/10 We’re always happy to find a quality stock we hadn’t considered. Booking Holdings delivers consistent returns, recovering nicely from the pandemic. The company maintains a diverse portfolio of offerings within the same vertical, which in our opinion, gives them a competitive edge. While the stock is overstretched at the moment, we like it on pullbacks. [-facebook-share]( [-twitter-share]( [-linkedin-share]( [-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheJuiceAlternate%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E98%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D585749?utm_medium=ic-nl&utm_source=110866 ) News & Insights Freshly Squeezed - [20 Countries That Have the Most Sex]( - [A Daily Stock Pick With Professional Analysis]( - [10 Best Economic Recovery Stocks to Buy]( - [Benzinga Explores The Future Of AI: Top Industry Executives To Share Cutting-Edge Insights At Webinar]( [News & Insights-facebook-share]( [News & Insights-twitter-share]( [News & Insights-linkedin-share]( [News & Insights-email-share](mailto:?body= %3Cbr+%2F%3E%0A%3Cb%3ENotice%3C%2Fb%3E%3A++Undefined+property%3A+stdClass%3A%3A%24previewText+in+%3Cb%3E%2Fvar%2Fwww%2Fhtml%2Fnl_forms%2Fsrc%2FICTheJuiceAlternate%2Fautomate-ic-article.php%3C%2Fb%3E+on+line+%3Cb%3E98%3C%2Fb%3E%3Cbr+%2F%3E%0Ahttps%3A%2F%2Finvestingchannel.com%2F%3Fp%3D585749?utm_medium=ic-nl&utm_source=110866 ) [We want to hear from you. Let us know your thoughts by clicking here]( [Pixel] [InvestingChannel Logo](#) Follow us on: [Facebook Logo]( [LinkedIn Logo]( [Twitter Logo]( [Instagram Logo]( To ensure delivery of all emails, [allow us on your list](. Manage your subscriptions with our [preference center](. [Unsubscribe here.]( View our privacy policy [here](. Copyright ©2023 InvestingChannel. All rights reserved. 1325 Avenue of the Americas, Floor 27 & 28 New York, New York 10019 Disclaimer: This is not investment advice. This InvestingChannel, Inc., newsletter is for information purposes only and is based on opinion. Futures, forex, stock, and options trading are not appropriate for all investors. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can ensure returns or eliminate losses. InvestingChannel, Inc., makes no representation or implication that using any of the methodologies or systems in this newsletter will generate returns or insure against losses. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions. [Link](