Daniel Kurtis, Benchmark media and Internet analyst, joins 'The Exchange' to discuss how investors could position their travel stocks, Expedia, consumer impact on travel, and more.

BKNG is a long-term growth idea due to a secular trend in travel prioritizing experiences over material possessions, especially among Gen Z and Millennials. In an online travel market growing at 6% annually over the long term, BKNG is demonstrating long-term growth rates of around 10% and more across all metrics. BKNG is valued at a 22 TTM P/E and a 2027 Forward P/E of 12. This attractive valuation adequately accounts for competitive, geopolitical, and regulatory risks, among others.

In early June, Morgan Stanley (NYSE: MS ) published a report on travel industry trends. The results confirm what many investors believe when it comes to the best travel stocks.

Booking Holdings (BKNG) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

The new relationship will focus on driving innovation and delivering superior content to travelers SOUTHLAKE, Texas , Aug. 8, 2024 /PRNewswire/ -- Sabre Corporation  (NASDAQ: SABR), a leading software and technology provider powering the global travel industry, and Priceline, a leading online travel agency (OTA), today announced a new expanded, multi-year agreement to deliver joint growth in travel retailing. Under the new agreement, Priceline will adopt Sabre Direct Pay to support its travel payments needs, delivering a more secure, automated, and integrated payment process.

Shares of Booking have corrected nearly 20% after reporting Q2 results, echoed as well by Airbnb's weak Q2 earnings print. In my view, the selloff is overdone. Upgrading Booking back up to a neutral rating. Despite decelerating bookings growth, there's a possibility that travelers are merely shortening bookings lead times rather than foregoing trips overall.

Black Monday saw significant corrections in various asset classes, including equities, cryptocurrencies, and commodities. Major indices like Nikkei 225 and Kospi experienced significant drops, with Nasdaq down 6% before the opening bell. Despite the sell-off, some individual stocks, like Advanced Micro Devices and Crowdstrike, saw slight gains.

Booking Holdings shares are having a volatile year due to industry slowdown concerns. The second quarter results were worrisome when compared to Airbnb. Valuation is low heading into a deceleration period, offering potential upside for long-term investors.

As the world continues to embrace travel with renewed vigor in the post-pandemic era, the industry is poised for significant growth throughout the remainder of 2024. With August already here, some investors may worry that the best opportunities have already been seized.

Booking Holdings' (BKNG) second-quarter results reflect strength in its merchant business.

Second-quarter adjusted earnings at Booking topped analysts' estimates.

Booking Holdings CEO Glenn Fogel joins 'Squawk Box' to discuss the company's quarterly earnings results, state of travel demand, long-term growth outlook, impact of AI, and more.