Back to top

Image: Bigstock

Trip.com (TCOM) Stock Drops Despite Market Gains: Important Facts to Note

Read MoreHide Full Article

Trip.com (TCOM - Free Report) closed at $59.03 in the latest trading session, marking a -0.51% move from the prior day. This change lagged the S&P 500's daily gain of 0.15%. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.09%.

Coming into today, shares of the travel services company had lost 6.08% in the past month. In that same time, the Consumer Discretionary sector gained 0.88%, while the S&P 500 lost 0.21%.

The upcoming earnings release of Trip.com will be of great interest to investors. On that day, Trip.com is projected to report earnings of $0.86 per share, which would represent year-over-year growth of 3.61%. At the same time, our most recent consensus estimate is projecting a revenue of $1.91 billion, reflecting a 15.93% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.44 per share and revenue of $8.45 billion. These totals would mark changes of -4.18% and +14.02%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for Trip.com. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 remained stagnant. Trip.com is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Trip.com is at present trading with a Forward P/E ratio of 17.23. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 17.23.

Investors should also note that TCOM has a PEG ratio of 1.06 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Leisure and Recreation Services industry was having an average PEG ratio of 1.21.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 153, which puts it in the bottom 39% of all 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Trip.com Group Limited Sponsored ADR (TCOM) - free report >>

Published in