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TripAdvisor (TRIP) Stock Jumps 6.7%: Will It Continue to Soar?

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TripAdvisor (TRIP - Free Report) shares rallied 6.7% in the last trading session to close at $52.64. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 60.2% gain over the past four weeks.

TripAdvisor extended its rally, driven by the latest material revision made by the Citigroup analyst, Jason Bazinet, who upgraded the company’s shares from ‘Neutral’ to ‘Buy’. This is primarily attributed to the newly introduced subscription-based service —TripAdvisor Plus, which offers access to better deals from several hotels. Notably, the service poises the company well to gain strong momentum across the travellers. This, in turn, is likely to bolster its subscriber base. Further, the company’s expanding footprint in the international restaurant reservation space is contributing well to its top line.

Price and Consensus

Price Consensus Chart for TripAdvisor

This travel website operator is expected to post quarterly loss of $0.30 per share in its upcoming report, which represents a year-over-year change of -528.6%. Revenues are expected to be $125.37 million, down 54.9% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For TripAdvisor, the consensus EPS estimate for the quarter has been revised 68.2% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on TRIP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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