Trip.com (TCOM – Free Report) closed at $69.24 in the latest trading session, marking a -0.72% move from the prior day. This change lagged the S&P 500’s 0.01% loss on the day. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw an increase of 0.41%.
Coming into today, shares of the travel services company had gained 5.97% in the past month. In that same time, the Consumer Discretionary sector gained 9.91%, while the S&P 500 gained 4.88%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. The company is slated to reveal its earnings on February 24, 2025. The company’s upcoming EPS is projected at $0.52, signifying a 7.14% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.69 billion, indicating a 16.34% growth compared to the corresponding quarter of the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Trip.com. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Trip.com possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Trip.com’s current valuation metrics, including its Forward P/E ratio of 17.48. This represents a discount compared to its industry’s average Forward P/E of 20.57.
Also, we should mention that TCOM has a PEG ratio of 0.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Leisure and Recreation Services industry had an average PEG ratio of 0.78 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 37, positioning it in the top 15% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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