Trip.com (TCOM) closed the latest trading day at $54.16, indicating a -1.15% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 3.46%. At the same time, the Dow lost 2.5%, and the tech-heavy Nasdaq lost 4.31%.
The travel services company's stock has dropped by 11.08% in the past month, falling short of the Consumer Discretionary sector's loss of 6.94% and the S&P 500's loss of 5.27%.
Market participants will be closely following the financial results of Trip.com in its upcoming release. It is anticipated that the company will report an EPS of $0.86, marking a 3.61% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.91 billion, indicating a 15.93% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.44 per share and a revenue of $8.45 billion, signifying shifts of -4.18% and +14.02%, respectively, from the last year.
Any recent changes to analyst estimates for Trip.com should also be noted by investors. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 1.06% lower. At present, Trip.com boasts a Zacks Rank of #4 (Sell).
In the context of valuation, Trip.com is at present trading with a Forward P/E ratio of 15.16. This represents a discount compared to its industry's average Forward P/E of 15.2.
It's also important to note that TCOM currently trades at a PEG ratio of 0.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TCOM's industry had an average PEG ratio of 0.95 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 58, positioning it in the top 24% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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