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Trip.com (TCOM) Stock Dips While Market Gains: Key Facts

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Trip.com (TCOM - Free Report) ended the recent trading session at $63.50, demonstrating a -1.44% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.33%.

The stock of travel services company has risen by 9.82% in the past month, leading the Consumer Discretionary sector's gain of 2.32% and the S&P 500's gain of 4.93%.

Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.98, marking a 2% fall 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 full year, the Zacks Consensus Estimates project earnings of $3.55 per share and a revenue of $8.48 billion, demonstrating changes of -1.11% and +14.41%, respectively, from the preceding year.

Any recent changes to analyst estimates for Trip.com should also be noted by investors. 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.58% lower within the past month. Trip.com currently has a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Trip.com has a Forward P/E ratio of 18.15 right now. This indicates a discount in contrast to its industry's Forward P/E of 22.38.

We can additionally observe that TCOM currently boasts a PEG ratio of 2.7. 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 Leisure and Recreation Services industry currently had an average PEG ratio of 1.92 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 173, finds itself in the bottom 30% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.


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