Trip.com (TCOM) ended the recent trading session at $63.09, demonstrating a +2.32% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.4%. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq appreciated by 0.18%.
Coming into today, shares of the travel services company had gained 2% in the past month. In that same time, the Consumer Discretionary sector gained 6.85%, while the S&P 500 gained 4.97%.
The investment community will be closely monitoring the performance of Trip.com in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.99, reflecting a 1% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $2.03 billion, reflecting a 15.73% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.6 per share and a revenue of $8.48 billion, indicating changes of +0.28% and +14.41%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Tripcom. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Trip.com is carrying a Zacks Rank of #3 (Hold).
Investors should also note Trip.com's current valuation metrics, including its Forward P/E ratio of 17.13. Its industry sports an average Forward P/E of 22.31, so one might conclude that Trip.com is trading at a discount comparatively.
We can additionally observe that TCOM currently boasts a PEG ratio of 2.55. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TCOM's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Trip.com Group Limited Sponsored ADR (TCOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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