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Here's Why Trip.com (TCOM) Fell More Than Broader Market
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Trip.com (TCOM - Free Report) ended the recent trading session at $70.54, demonstrating a -2.66% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.99%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 1.58%.
The travel services company's stock has dropped by 3.3% in the past month, exceeding the Consumer Discretionary sector's loss of 12.43% and lagging the S&P 500's gain of 3.59%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. The company is forecasted to report an EPS of $1.15, showcasing a 8% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.54 billion, indicating a 12.35% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.69 per share and revenue of $8.56 billion, indicating changes of +2.79% and +15.52%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Tripcom. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Trip.com is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Trip.com currently has a Forward P/E ratio of 19.64. This represents a discount compared to its industry average Forward P/E of 20.68.
We can also see that TCOM currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Here's Why Trip.com (TCOM) Fell More Than Broader Market
Trip.com (TCOM - Free Report) ended the recent trading session at $70.54, demonstrating a -2.66% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.99%. Meanwhile, the Dow lost 0.23%, and the Nasdaq, a tech-heavy index, lost 1.58%.
The travel services company's stock has dropped by 3.3% in the past month, exceeding the Consumer Discretionary sector's loss of 12.43% and lagging the S&P 500's gain of 3.59%.
The investment community will be paying close attention to the earnings performance of Trip.com in its upcoming release. The company is forecasted to report an EPS of $1.15, showcasing a 8% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $2.54 billion, indicating a 12.35% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $3.69 per share and revenue of $8.56 billion, indicating changes of +2.79% and +15.52%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for Tripcom. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Trip.com is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Trip.com currently has a Forward P/E ratio of 19.64. This represents a discount compared to its industry average Forward P/E of 20.68.
We can also see that TCOM currently has a PEG ratio of 2.47. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Leisure and Recreation Services industry currently had an average PEG ratio of 1.22 as of yesterday's close.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 83, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.