Trip.com (TCOM) ended the recent trading session at $62.05, demonstrating a +2.34% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 1.47%. On the other hand, the Dow registered a gain of 1.34%, and the technology-centric Nasdaq increased by 1.95%.
The travel services company's shares have seen an increase of 3.22% over the last month, surpassing the Consumer Discretionary sector's loss of 4.65% and the S&P 500's gain of 0.64%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. The company is predicted to post an EPS of $0.98, indicating a 2% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.04 billion, up 16.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.55 per share and a revenue of $8.49 billion, demonstrating changes of -1.11% and +14.54%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Tripcom. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.58% lower. Trip.com currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Trip.com is presently trading at a Forward P/E ratio of 17.08. Its industry sports an average Forward P/E of 21.1, so one might conclude that Trip.com is trading at a discount comparatively.
We can also see that TCOM currently has a PEG ratio of 2.55. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Leisure and Recreation Services was holding an average PEG ratio of 1.62 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 182, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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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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