Trip.com (TCOM) ended the recent trading session at $75.20, demonstrating a -1.23% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Meanwhile, the Dow experienced a rise of 0.18%, and the technology-dominated Nasdaq saw an increase of 0.31%.
The travel services company's stock has climbed by 3.24% in the past month, exceeding the Consumer Discretionary sector's gain of 0.17% and the S&P 500's gain of 3.15%.
Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.15, signifying a 8.00% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.54 billion, indicating a 12.35% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.69 per share and revenue of $8.54 billion, which would represent changes of +2.79% and +15.15%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Tripcom. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Trip.com holds a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Trip.com is currently being traded at a Forward P/E ratio of 20.63. This valuation marks a discount compared to its industry average Forward P/E of 21.1.
It is also worth noting that TCOM currently has a PEG ratio of 2.78. 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. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.27.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many 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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