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Trip.com (TCOM) Gains As Market Dips: What You Should Know

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Trip.com (TCOM - Free Report) ended the recent trading session at $63.61, demonstrating a +2.07% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.01% for the day. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw an increase of 0.05%.

Heading into today, shares of the travel services company had gained 10.22% over the past month, outpacing the Consumer Discretionary sector's gain of 6.61% and the S&P 500's gain of 5.37%.

The investment community will be closely monitoring the performance of Trip.com in its forthcoming earnings report. The company's upcoming EPS is projected at $0.99, signifying a 1.00% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.03 billion, up 15.73% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $3.6 per share and a revenue of $8.48 billion, representing changes of +0.28% and +14.41%, respectively, from the prior year.

Any recent changes to analyst estimates for Trip.com should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Trip.com currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Trip.com is presently being traded at a Forward P/E ratio of 17.31. This valuation marks a discount compared to its industry average Forward P/E of 22.62.

It's also important to note that TCOM currently trades at a PEG ratio of 2.58. 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. The average PEG ratio for the Leisure and Recreation Services industry stood at 1.91 at the close of the market yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 38% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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