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Trip.com (TCOM) closed the latest trading day at $71.29, indicating a -0.21% change from the previous session's end. This change was narrower than the S&P 500's daily loss of 0.47%. Meanwhile, the Dow experienced a drop of 0.31%, and the technology-dominated Nasdaq saw a decrease of 0.51%.
Shares of the travel services company have appreciated by 4.05% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 2.51% and the S&P 500's gain of 1.67%.
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 $0.52, down 7.14% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.69 billion, indicating a 16.34% increase compared to the same quarter of the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Trip.com. 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 company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.28% higher. Trip.com is currently sporting a Zacks Rank of #1 (Strong Buy).
Looking at its valuation, Trip.com is holding a Forward P/E ratio of 17.91. This valuation marks a discount compared to its industry's average Forward P/E of 20.17.
Also, we should mention that TCOM has a PEG ratio of 0.64. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Leisure and Recreation Services industry had an average PEG ratio of 0.8 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
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.