15 Best Stocks to Buy According to Hosking Partners

8. Booking Holdings Inc. (NASDAQ:BKNG)

Hosking Partners’ Stake Value: $70,003,667

Percentage of Hosking Partners’ 13F Portfolio: 2.59%

Number of Hedge Fund Holders: 96

Booking Holdings Inc. (NASDAQ:BKNG) is a leading provider of online travel and related services, offering hotel bookings, car rentals, flight reservations, and dining options through well-known brands like Booking.com, Priceline, Agoda, Kayak, and OpenTable. The company benefits from a large user base, boasting over 100 million users of its software application in 2023, and 563 million site visits in May 2023. This extensive user data allows the company to employ AI solutions like Trip Planner and Penny to enhance customer service.

The company is well-positioned for continued growth, driven by a shift in travellers preferences toward booking entire trips online, particularly among Millennials and Gen Z. In Q2, Booking Holdings reported a 7.3% year-over-year revenue increase, reaching $5.86 billion, surpassing Wall Street’s expectations. The company saw a 7% rise in room nights booked, totaling 287 million, and gross travel bookings grew by 4% to $41.4 billion. Earnings per share (EPS) increased by 27% year-over-year to $44.38.

Booking Holdings continues to expand its diverse service offerings, with a strong focus on integrating artificial intelligence (AI) and technology. Innovations like a generative AI-assisted trip planner and upgraded mobile apps have streamlined booking processes and improved user experiences. The company has also expanded its revenue streams with advancements in flights, ground transportation, and restaurant reservations via OpenTable.

Despite the popularity of platforms like Airbnb, Inc. (NASDAQ:BKNG), there remains strong demand for traditional hotel accommodations and the convenience of OTAs, suggesting a thriving market where Booking Holdings will continue to benefit from providing comprehensive and efficient booking solutions.

Wedgewood Partners stated the following regarding Booking Holdings Inc. (NASDAQ:BKNG) in its Q2 2024 investor letter:

“Booking Holdings Inc. (NASDAQ:BKNG) contributed to performance as travel spending across the U.S. and Europe remains quite healthy, whereas the Company took share in alternative accommodations, and looks set to expand margins after a few years of reinvestment. The Company has also been aggressively reducing its share count at reasonably attractive valuation multiples. Booking should be able to compound earnings at an attractive, double-digit rate for the next few years given these various initiatives.”