Booking Enters Historically Strong Trading Window Ahead Of Earnings

Shares of Booking Holdings Inc. BKNG are approaching one of their historically strongest trading periods, with mid-February often delivering substantial gains. Investors looking for a seasonal edge may find a compelling opportunity ahead of the company’s upcoming earnings report.

According to data from Seasonax, buying Booking stock on Feb. 11 and holding until Feb. 20 has historically yielded an average return of 6.43% over the past two decades, with a median return of 5.1%.

The pattern is remarkably strong, with gains occurring 16 out of 20 times. The largest increase happened in 2008 when shares surged 24.04%, while the steepest loss was recorded in 2011, with a 4.2% decline.

Is Seasonality Still A Reliable Indicator?

The February rally in Booking stock often coincides with its fourth-quarter earnings report, a key catalyst for price movements.

Yet, the stock's performance in recent years has shown a more muted seasonal effect. Over the last five years, the average gain between Feb. 11 and Feb. 20 has shrunk to 1.79%, with three positive years and two negative ones.

This suggests that while historical trends remain noteworthy, they have weakened over time as the company matured and its stock became more widely followed by institutional investors.

What to Expect From Booking's Earnings

Booking is set to report earnings on Feb. 20, after market close, and Wall Street is expecting solid growth.

Analysts forecast earnings per share (EPS) of $36.03, reflecting a 12.5% increase from the same quarter in 2023. Revenue is projected to come in at $5.18 billion, up 10% year-over-year.

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• $1000 Invested In Booking Holdings 20 Years Ago Would Be Worth This Much Today

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