Trip.com (TCOM) closed the most recent trading day at $57.62, moving -1% from the previous trading session. This change lagged the S&P 500's daily gain of 2.03%. Meanwhile, the Dow experienced a rise of 1.23%, and the technology-dominated Nasdaq saw an increase of 2.74%.
The travel services company's shares have seen a decrease of 7.78% over the last month, not keeping up with the Consumer Discretionary sector's loss of 4.94% and the S&P 500's loss of 5.07%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. The company is forecasted to report an EPS of $0.86, showcasing a 3.61% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.91 billion, up 15.93% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.44 per share and a revenue of $8.45 billion, indicating changes of -4.18% and +14.02%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Trip.com. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Trip.com possesses a Zacks Rank of #4 (Sell).
From a valuation perspective, Trip.com is currently exchanging hands at a Forward P/E ratio of 16.9. This represents a discount compared to its industry's average Forward P/E of 16.98.
It's also important to note that TCOM currently trades at a PEG ratio of 1.04. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.17 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 139, which puts it in the bottom 44% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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