Trip.com (TCOM) closed at $50.20 in the latest trading session, marking a -3.98% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.77%. Meanwhile, the Dow experienced a rise of 0.75%, and the technology-dominated Nasdaq saw an increase of 0.88%.
The travel services company's stock has dropped by 3.4% in the past month, exceeding the Consumer Discretionary sector's loss of 4.73% and lagging the S&P 500's gain of 8.15%.
Investors will be eagerly watching for the performance of Trip.com in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.85, showcasing a 3.66% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.33 billion, up 22.02% from the year-ago period.
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 latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Trip.com is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Trip.com is currently trading at a Forward P/E ratio of 12.69. This valuation marks a discount compared to its industry average Forward P/E of 15.45.
Investors should also note that TCOM has a PEG ratio of 3.17 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.36 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 209, placing it within the bottom 15% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).