Trip.com (TCOM) closed at $66.24 in the latest trading session, marking a +1.1% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.73% for the day. Elsewhere, the Dow lost 0.64%, while the tech-heavy Nasdaq added 1.61%.
Prior to today's trading, shares of the travel services company had gained 15.45% over the past month. This has lagged the Consumer Discretionary sector's gain of 16.16% and outpaced the S&P 500's gain of 9.07% in that time.
The upcoming earnings release of Trip.com will be of great interest to investors. The company's earnings report is expected on May 19, 2025. 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. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.44 per share and revenue of $8.45 billion, indicating changes of -4.18% and +14.02%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Trip.com should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, there's been no change in the Zacks Consensus EPS estimate. Trip.com presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Trip.com is currently exchanging hands at a Forward P/E ratio of 19.03. Its industry sports an average Forward P/E of 19.92, so one might conclude that Trip.com is trading at a discount comparatively.
It's also important to note that TCOM currently trades at a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.64 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 137, this industry ranks in the bottom 45% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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