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Trip.com (TCOM) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest close session, Trip.com (TCOM - Free Report) was up +1.26% at $76.10. This move outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.

The travel services company's shares have seen an increase of 7.13% over the last month, surpassing the Consumer Discretionary sector's gain of 1.06% and the S&P 500's gain of 0.59%.

The upcoming earnings release of Trip.com will be of great interest to investors. It is anticipated that the company will report an EPS of $0.72, marking a 20% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $2.1 billion, reflecting a 20.05% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $6.46 per share and revenue of $8.71 billion, which would represent changes of +79.94% and 0%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Tripcom. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.23% higher within the past month. Right now, Trip.com possesses a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Trip.com is presently being traded at a Forward P/E ratio of 17.52. This indicates a discount in contrast to its industry's Forward P/E of 18.52.

One should further note that TCOM currently holds a PEG ratio of 2.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TCOM's industry 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. At present, this industry carries a Zacks Industry Rank of 86, placing it within the top 36% of over 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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