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Trivago N.V. ADS (TRVG) Surges 17.7%: Is This an Indication of Further Gains?

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Trivago N.V. ADS (TRVG - Free Report) shares ended the last trading session 17.7% higher at $5.18. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 64.8% gain over the past four weeks.

Trivago extended its rally, driven by the optimism regarding the COVID-19 vaccines throughout the world, which is likely to bring a strong recovery in the global travel demand. The company’s positive outlook for the second half of 2021 remains noteworthy. It anticipates normalcy in the travel trend by this period, with an expectation of strong local as well as international travel demand this summer.

Price and Consensus

Price Consensus Chart for Trivago N.V. ADS

This company is expected to post quarterly loss of $0.02 per share in its upcoming report, which represents no change from the year-ago quarter. Revenues are expected to be $56.52 million, down 63.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Trivago N.V. ADS, the consensus EPS estimate for the quarter has been revised 33.3% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on TRVG 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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