Trip.com (TCOM) closed at $46.48 in the latest trading session, marking a +1.04% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.66%. Elsewhere, the Dow saw an upswing of 1.19%, while the tech-heavy Nasdaq appreciated by 2.78%.
Shares of the travel services company witnessed a gain of 11.98% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 1.92%, and the S&P 500's loss of 1.49%.
The upcoming earnings release of Trip.com will be of great interest to investors. It is anticipated that the company will report an EPS of $0.98, marking a 2.97% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.31 billion, up 11.49% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.77 per share and a revenue of $9.94 billion, representing changes of -42.18% and +13.47%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
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, there's been a 2.34% fall in the Zacks Consensus EPS estimate. Trip.com currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Trip.com is currently being traded at a Forward P/E ratio of 12.21. Its industry sports an average Forward P/E of 17.72, so one might conclude that Trip.com is trading at a discount comparatively.
We can also see that TCOM currently has a PEG ratio of 3.05. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Leisure and Recreation Services industry held an average PEG ratio of 1.47.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 82, placing it within the top 34% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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).