Trip.com (TCOM) closed at $71.38 in the latest trading session, marking a +1.77% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.07%. On the other hand, the Dow registered a gain of 1.12%, and the technology-centric Nasdaq increased by 1.37%.
The travel services company's shares have seen a decrease of 10.67% over the last month, not keeping up with the Consumer Discretionary sector's loss of 4.58% and the S&P 500's gain of 1.08%.
The upcoming earnings release of Trip.com will be of great interest to investors. It is anticipated that the company will report an EPS of $1.15, marking a 8% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.54 billion, up 12.35% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.69 per share and a revenue of $8.56 billion, signifying shifts of +2.79% and +15.52%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Tripcom. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Trip.com is carrying a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Trip.com is holding a Forward P/E ratio of 19.01. This expresses a discount compared to the average Forward P/E of 19.85 of its industry.
We can additionally observe that TCOM currently boasts a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TCOM's industry had an average PEG ratio of 1.21 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 52, positioning it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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