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Trip.com (TCOM) closed at $68.66 in the latest trading session, marking a +0.07% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.43% for the day. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.9%.
The travel services company's shares have seen an increase of 5.15% over the last month, surpassing the Consumer Discretionary sector's loss of 2.88% and the S&P 500's loss of 1.98%.
The upcoming earnings release of Trip.com will be of great interest to investors. The company's upcoming EPS is projected at $0.51, signifying an 8.93% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.7 billion, indicating a 17.03% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $3.71 per share and a revenue of $7.31 billion, demonstrating changes of +35.4% and +17.35%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Trip.com. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 #1 (Strong Buy).
Looking at valuation, Trip.com is presently trading at a Forward P/E ratio of 18.49. This signifies a discount in comparison to the average Forward P/E of 21.27 for its industry.
We can additionally observe that TCOM currently boasts a PEG ratio of 0.92. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services industry had an average PEG ratio of 0.95 as trading concluded yesterday.
The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 28, finds itself in the top 12% echelons of all 250+ industries.