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Trip.com (TCOM) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Trip.com (TCOM - Free Report) closed at $46.19, marking a -1.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.6%.
Shares of the travel services company witnessed a gain of 11.24% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 3.7%, and the S&P 500's gain of 2.46%.
Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. The company is expected to report EPS of $0.98, down 2.97% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.29 billion, indicating a 10.52% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.71 per share and revenue of $9.94 billion, which would represent changes of -43.1% and +13.47%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.08% lower. Trip.com is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Trip.com is currently trading at a Forward P/E ratio of 12.71. This indicates a discount in contrast to its industry's Forward P/E of 17.29.
Investors should also note that TCOM has a PEG ratio of 3.18 right now. 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 was holding an average PEG ratio of 1.36 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Trip.com (TCOM) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Trip.com (TCOM - Free Report) closed at $46.19, marking a -1.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.32%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 0.6%.
Shares of the travel services company witnessed a gain of 11.24% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 3.7%, and the S&P 500's gain of 2.46%.
Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. The company is expected to report EPS of $0.98, down 2.97% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $2.29 billion, indicating a 10.52% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.71 per share and revenue of $9.94 billion, which would represent changes of -43.1% and +13.47%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 4.08% lower. Trip.com is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Trip.com is currently trading at a Forward P/E ratio of 12.71. This indicates a discount in contrast to its industry's Forward P/E of 17.29.
Investors should also note that TCOM has a PEG ratio of 3.18 right now. 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 was holding an average PEG ratio of 1.36 at yesterday's closing price.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 152, this industry ranks in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.