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Trip.com (TCOM) Stock Slides as Market Rises: Facts to Know Before You Trade
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Trip.com (TCOM - Free Report) ended the recent trading session at $38.46, demonstrating a -2.85% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Prior to today's trading, shares of the travel services company had gained 2.46% outpaced the Consumer Discretionary sector's gain of 2.1% and the S&P 500's loss of 0.2%.
Market participants will be closely following the financial results of Trip.com in its upcoming release. On that day, Trip.com is projected to report earnings of $1.18 per share, which would represent a year-over-year decline of 69.51%. In the meantime, our current consensus estimate forecasts the revenue to be $2.81 billion, indicating a 8.93% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.7 per share and a revenue of $10.02 billion, indicating changes of -43.25% and +14.43%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Tripcom. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 remained stagnant within the past month. Currently, Trip.com is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Trip.com is currently trading at a Forward P/E ratio of 10.71. This represents a discount compared to its industry average Forward P/E of 16.44.
One should further note that TCOM currently holds a PEG ratio of 2.68. 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 average PEG ratio for the Leisure and Recreation Services industry stood at 1.31 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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Trip.com (TCOM) Stock Slides as Market Rises: Facts to Know Before You Trade
Trip.com (TCOM - Free Report) ended the recent trading session at $38.46, demonstrating a -2.85% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.28%. Meanwhile, the Dow experienced a rise of 0.19%, and the technology-dominated Nasdaq saw an increase of 0.27%.
Prior to today's trading, shares of the travel services company had gained 2.46% outpaced the Consumer Discretionary sector's gain of 2.1% and the S&P 500's loss of 0.2%.
Market participants will be closely following the financial results of Trip.com in its upcoming release. On that day, Trip.com is projected to report earnings of $1.18 per share, which would represent a year-over-year decline of 69.51%. In the meantime, our current consensus estimate forecasts the revenue to be $2.81 billion, indicating a 8.93% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.7 per share and a revenue of $10.02 billion, indicating changes of -43.25% and +14.43%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Tripcom. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 remained stagnant within the past month. Currently, Trip.com is carrying a Zacks Rank of #4 (Sell).
In terms of valuation, Trip.com is currently trading at a Forward P/E ratio of 10.71. This represents a discount compared to its industry average Forward P/E of 16.44.
One should further note that TCOM currently holds a PEG ratio of 2.68. 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 average PEG ratio for the Leisure and Recreation Services industry stood at 1.31 at the close of the market yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.