Trip.com (TCOM) Ascends While Market Falls: Some Facts to Note
In the latest trading session, Trip.com (TCOM) closed at $39.10, marking a +1.19% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw a downswing of 0.86%, while the tech-heavy Nasdaq appreciated by 0.24%.
Coming into today, shares of the travel services company had lost 11.86% in the past month. In that same time, the Consumer Discretionary sector lost 8.16%, while the S&P 500 lost 0.42%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. It is anticipated that the company will report an EPS of $1.18, marking a 69.51% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 8.93% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $3.7 per share and a revenue of $10.02 billion, demonstrating changes of -43.25% and +14.43%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Tripcom. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 2.23% lower. Trip.com currently has a Zacks Rank of #4 (Sell).
With respect to valuation, Trip.com is currently being traded at a Forward P/E ratio of 10.45. This valuation marks a discount compared to its industry average Forward P/E of 15.04.
It's also important to note that TCOM currently trades at a PEG ratio of 2.61. 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. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.2.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 192, putting it in the bottom 22% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
