Trip.com (TCOM) closed at $76.71 in the latest trading session, marking a -1.43% move from the prior day. The stock’s change was less than the S&P 500’s daily loss of 0.55%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Shares of the travel services company witnessed a gain of 18.03% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 0.06%, and the S&P 500’s gain of 3.64%.
Market participants will be closely following the financial results of Trip.com in its upcoming release. On that day, Trip.com is projected to report earnings of $1.15 per share, which would represent a year-over-year decline of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.54 billion, up 12.35% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.69 per share and revenue of $8.54 billion. These totals would mark changes of +2.79% and +15.15%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Tripcom. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 5.14% increase. Trip.com presently features a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Trip.com has a Forward P/E ratio of 21.09 right now. This denotes no noticeable deviation relative to the industry average Forward P/E of 21.09.
Meanwhile, TCOM’s PEG ratio is currently 2.85. 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. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.33 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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This article originally published on Zacks Investment Research (zacks.com).
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