In the latest close session, Trip.com (TCOM) was up +2.71% at $54.21. This change outpaced the S&P 500's 1.02% gain on the day. On the other hand, the Dow registered a gain of 1.62%, and the technology-centric Nasdaq increased by 0.89%.
Heading into today, shares of the travel services company had gained 6.01% over the past month, outpacing the Consumer Discretionary sector's gain of 3.07% and lagging the S&P 500's gain of 12.23%.
The upcoming earnings release of Trip.com will be of great interest to investors. The company is expected to report EPS of $0.85, up 3.66% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.33 billion, indicating a 22.02% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.12 per share and a revenue of $10.44 billion, representing changes of -36.81% and +19.17%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Tripcom. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.46% downward. Trip.com is currently a Zacks Rank #4 (Sell).
Looking at its valuation, Trip.com is holding a Forward P/E ratio of 12.81. This signifies a discount in comparison to the average Forward P/E of 15.92 for its industry.
It is also worth noting that TCOM currently has a PEG ratio of 3.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.15 based on yesterday's closing prices.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 211, finds itself in the bottom 14% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TCOM in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).