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Why Trip.com (TCOM) Dipped More Than Broader Market Today

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In the latest close session, Trip.com (TCOM - Free Report) was down 2.59% at $63.18. This change lagged the S&P 500's daily loss of 0.24%. Elsewhere, the Dow saw an upswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.67%.

Coming into today, shares of the travel services company had gained 2.46% in the past month. In that same time, the Consumer Discretionary sector lost 0.3%, while the S&P 500 gained 1.95%.

Market participants will be closely following the financial results of Trip.com in its upcoming release. The company plans to announce its earnings on August 27, 2025. The company's upcoming EPS is projected at $0.98, signifying a 2.00% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.04 billion, indicating a 16.06% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.55 per share and revenue of $8.49 billion, which would represent changes of -1.11% and +14.54%, respectively, from the prior 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Trip.com is currently a Zacks Rank #4 (Sell).

Investors should also note Trip.com's current valuation metrics, including its Forward P/E ratio of 18.27. This signifies a discount in comparison to the average Forward P/E of 21.16 for its industry.

One should further note that TCOM currently holds a PEG ratio of 2.72. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Leisure and Recreation Services industry had an average PEG ratio of 1.1.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 184, this industry ranks in the bottom 26% of all industries, numbering over 250.

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.

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


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