In the latest close session, Trip.com (TCOM) was up +2.48% at $38.90. The stock outperformed the S&P 500, which registered a daily gain of 0.6%. Elsewhere, the Dow gained 0.83%, while the tech-heavy Nasdaq added 0.64%.
Coming into today, shares of the travel services company had lost 1.91% in the past month. In that same time, the Consumer Discretionary sector lost 0.15%, while the S&P 500 gained 1.34%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. In that report, analysts expect Trip.com to post earnings of $1.18 per share. This would mark a year-over-year decline of 69.51%. Meanwhile, the latest consensus estimate predicts the revenue to be $2.81 billion, indicating a 8.93% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.7 per share and a revenue of $10.02 billion, representing changes of -43.25% and +14.43%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Tripcom. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 2.13% lower within the past month. Currently, Trip.com is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Trip.com is presently being traded at a Forward P/E ratio of 10.27. This signifies a discount in comparison to the average Forward P/E of 15.33 for its industry.
We can additionally observe that TCOM currently boasts a PEG ratio of 2.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 1.13 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 169, finds itself in the bottom 32% echelons of all 250+ industries.
Source: finance.yahoo.com
