Trip.com (TCOM) closed at $47.40 in the latest trading session, marking a -1.2% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.75%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 2.54%.
Heading into today, shares of the travel services company had lost 8.24% over the past month, lagging the Consumer Discretionary sector's loss of 1.28% and the S&P 500's loss of 1.63%.
Investors will be eagerly watching for the performance of Trip.com in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.85, marking a 3.66% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 22.02% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.12 per share and revenue of $10.44 billion, indicating changes of -36.81% and +19.25%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tripcom. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Trip.com possesses a Zacks Rank of #4 (Sell).
In terms of valuation, Trip.com is presently being traded at a Forward P/E ratio of 11.64. This indicates a discount in contrast to its industry's Forward P/E of 15.59.
It's also important to note that TCOM currently trades at a PEG ratio of 2.91. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.28 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 195, putting it in the bottom 21% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).