Trip.com (TCOM) closed at $72.82 in the latest trading session, marking a +2.45% move from the prior day. This move outpaced the S&P 500's daily gain of 0.79%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq gained 1.15%.
The travel services company's stock has dropped by 6.12% in the past month, falling short of the Consumer Discretionary sector's loss of 1.93% and the S&P 500's gain of 1.27%.
Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.15, indicating a 8% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, up 12.35% from the year-ago period.
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 might also notice recent changes to analyst estimates for Tripcom. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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. 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 19.26. For comparison, its industry has an average Forward P/E of 20.48, which means Trip.com is trading at a discount to the group.
We can additionally observe that TCOM currently boasts a PEG ratio of 2.42. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.28 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 94, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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