In the latest market close, Trip.com (TCOM) reached $61.22, with a +1.21% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.77%. At the same time, the Dow lost 0.95%, and the tech-heavy Nasdaq lost 0.87%.
The travel services company's shares have seen an increase of 12.96% over the last month, not keeping up with the Consumer Discretionary sector's gain of 14.18% and outstripping the S&P 500's gain of 11.54%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. The company's upcoming EPS is projected at $0.86, signifying a 3.61% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.91 billion, indicating a 15.93% increase compared to the same quarter of the previous year.
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.
Investors should also note any recent changes to analyst estimates for Trip.com. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Trip.com is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Trip.com has a Forward P/E ratio of 17.57 right now. For comparison, its industry has an average Forward P/E of 18.53, which means Trip.com is trading at a discount to the group.
It's also important to note that TCOM currently trades at a PEG ratio of 1.08. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.42 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 182, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Trip.com Group Limited Sponsored ADR (TCOM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
