In the latest trading session, Trip.com (TCOM – Free Report) closed at $63.58, marking a +0.65% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.67% for the day. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw an increase of 0.87%.
The travel services company’s shares have seen an increase of 6.42% over the last month, surpassing the Consumer Discretionary sector’s loss of 8.16% and the S&P 500’s loss of 5.28%.
Investors will be eagerly watching for the performance of Trip.com in its upcoming earnings disclosure. In that report, analysts expect Trip.com to post earnings of $0.86 per share. This would mark year-over-year growth of 3.61%. Our most recent consensus estimate is calling for quarterly revenue of $1.91 billion, up 16.04% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.44 per share and a revenue of $8.46 billion, indicating changes of -4.18% and +14.07%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Trip.com. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.06% lower. Trip.com is currently sporting a Zacks Rank of #4 (Sell).
Digging into valuation, Trip.com currently has a Forward P/E ratio of 18.35. This signifies no noticeable deviation in comparison to the average Forward P/E of 18.35 for its industry.
It is also worth noting that TCOM currently has a PEG ratio of 1.13. 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 average PEG ratio for the Leisure and Recreation Services industry stood at 1.13 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% 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.
Don’t forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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