Trip.com (TCOM) ended the recent trading session at $47.97, demonstrating a +1.98% change from the preceding day's closing price. This move outpaced the S&P 500's daily loss of 1.62%. Meanwhile, the Dow lost 1.87%, and the Nasdaq, a tech-heavy index, lost 1.98%.
The travel services company's shares have seen a decrease of 9.56% over the last month, not keeping up with the Consumer Discretionary sector's loss of 0.56% and the S&P 500's loss of 0.03%.
Investors will be eagerly watching for the performance of Trip.com in its upcoming earnings disclosure. The company is expected to report EPS of $0.85, up 3.66% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $2.33 billion, indicating a 22.02% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.12 per share and revenue of $10.44 billion, which would represent changes of -36.81% and +19.25%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Tripcom. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Trip.com currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Trip.com currently has a Forward P/E ratio of 11.42. This represents a discount compared to its industry average Forward P/E of 15.83.
One should further note that TCOM currently holds a PEG ratio of 2.85. 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. TCOM's industry had an average PEG ratio of 1.31 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 193, putting it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).