BOOKING HOLDINGS INC.

1833.07 -22.79 (-1.24%) Buy

Search for alternative investments is on for BKNG investors as it ranked worse than it's peers

13 min read

BOOKING HOLDINGS INC. significantly underperformed on Thursday. It delivered -1.24% to close at 1833.07. On a day when the overall market breadth was 35%, it closed higher than 5% of the market. In comparison, the benchmark SP500 index closed today at -0.0002%.

[Themes containing BKNG]

BKNG is currently in a bullish trend. Over the last three months Buy-and-Hold has been a better strategy (returning -3.05%) for BKNG's investors than trading long signals.

Trend

BKNG has been outperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 8 Feb, 2016 to 7 May, 2018. Over the last 2 years 11 months and 9 days, BKNG outperformed the SP500 index on 55% days.

During the last three months BKNG delivered profits on 54% days. However, it still managed to end this period in a loss. It's best return during this period (of +4.19%) was on Tuesday, 6 Nov, 2018. While it's worst loss in the same period (of -4.37%) was on Wednesday, 10 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 2 Oct, 2018 and ended on 11 Oct, 2018. This bearish trend lost -10.86% of investor capital.

The last 12 months saw BKNG's investors making profits in 6 months and incurring losses in 6 months. BKNG was less consistent in delivering monthly returs than SP500 index. BKNG significantly outperformed SP500 index in Apr 2018, when it returned +7.25% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. BKNG had a shorter streak of profitable months than SP500 index. It only went up in 4 straight months during the last year. It is interesting to note that both BKNG and SP500 index significantly outperform during months when quarterly/annual results are announced.

"Hats have been my thing pretty much my whole life but finance has not. I would go to the corner store and buy really cheap baseball style caps and wear those to school.

BKNG is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in BKNG's volatility from 3 Oct, 2018 to 30 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that BKNG has significant positive skewness in it's return distribution. This indicates that investors can expect BKNG to recover from drawdowns quickly. Which makes BKNG a good candidate for investing on short-term bullish trends or even counter-trends hoping for a pull-back.

Investors trading in BKNG derivatives at this moment can consider 'Protective Collar' options strategy to receive better risk-adjusted returns.

SP500 index has more chance of extreme outcomes than BKNG. Therefore, SP500 must receive a lower allocation than BKNG in your portfolio. BKNG usually has shorter drawdown period than the SP500 index.

On a general note (since you are interested in BKNG), if you are evaluating BKNG as an investment candidate, then you should read about QSR which has delivered similar performance and can help diversify your portfolio.

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