Trip.com (TCOM) closed the most recent trading day at $43.65, moving -1.22% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.89%. Elsewhere, the Dow gained 0.74%, while the tech-heavy Nasdaq added 1.29%.
The stock of travel services company has fallen by 4.8% in the past month, lagging the Consumer Discretionary sector's loss of 2.14% and the S&P 500's loss of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.98, showcasing a 2.97% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.31 billion, up 11.49% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.84 per share and a revenue of $10 billion, representing changes of -41.1% and +14.2%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Tripcom. Such recent modifications usually signify the changing landscape of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 9.33% lower. At present, Trip.com boasts a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Trip.com has a Forward P/E ratio of 11.5 right now. This represents a discount compared to its industry average Forward P/E of 16.55.
It is also worth noting that TCOM currently has a PEG ratio of 2.87. 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 1.4 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 35% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).