Daily US Stock Pick: 3-Year ROE > 15%

BKNG — Booking Holdings: when negative equity is the point

Booking Holdings screens as having 'no ROE' due to negative book equity from buybacks, and is down 22% YTD. Both facts obscure an exceptional compounder: ROIC at 354%, FCF yield at 6.96%, P/FCF at 14.4×, and a PEG below 1 on forward estimates. Today's pick explains the accounting quirk, the real profitability picture, Q1 2026 results, and the two key risks — AI disintermediation and a new Italian antitrust probe.