I see an opportunity in Booking after a 25.0% decline in three months and a 19.7% decline over twelve months, with the stock trading at $159.26, just 7.7% above its annual low. The valuation already prices in a great deal: the P/E is 17.3x, falling to 15.3x based on estimated 2026 EPS and 13.0x in 2027. In addition, consensus expects EPS to grow 57.4% in 2026 and 17.6% in 2027; Q3 2026 also beat estimates by 3.6%. I am not ignoring the risks: revenue fell 1.3% and free cash flow 22.0% in the latest quarter, signals that demand and earnings conversion need to be monitored. Even so, the 30.6% net margin and consensus upside potential of 35.0% offer an attractive margin of safety, although the minimum target is $150.00.
I am buying partially on depressed valuation and strong estimated EPS growth, while maintaining a cushion against weak cash flow.