Trip.com (TCOM) closed at $43.64 in the latest trading session, marking a +1.44% move from the prior day. The stock’s change was more than the S&P 500’s daily gain of 0.05%. Elsewhere, the Dow saw an upswing of 0.46%, while the tech-heavy Nasdaq depreciated by 0.64%.
Shares of the travel services company witnessed a gain of 6.25% over the previous month, beating the performance of the Consumer Discretionary sector with its loss of 2.45%, and the S&P 500’s gain of 0.61%.
Market participants will be closely following the financial results of Trip.com in its upcoming release. The company’s earnings per share (EPS) are projected to be $0.98, reflecting a 2.97% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.31 billion, indicating a 11.49% increase compared to the same quarter of the previous year.
TCOM’s full-year Zacks Consensus Estimates are calling for earnings of $3.84 per share and revenue of $10 billion. These results would represent year-over-year changes of -41.1% and +14.2%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tripcom. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 9.33% lower. Trip.com presently features a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Trip.com currently has a Forward P/E ratio of 11.19. This expresses a discount compared to the average Forward P/E of 16.39 of its industry.
We can also see that TCOM currently has a PEG ratio of 2.8. 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. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.36.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 67, finds itself in the top 28% echelons of all 250+ industries.
