Trip.com (TCOM) Registers a Bigger Fall Than the Market: Important Facts to Note

Trip.com (TCOM) closed the most recent trading day at $60.54, moving -1.5% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.07%. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.03%.

Prior to today's trading, shares of the travel services company had lost 1.44% lagged the Consumer Discretionary sector's gain of 5.29% and the S&P 500's gain of 3.94%.

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 $0.99, down 1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.03 billion, up 15.73% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.6 per share and revenue of $8.48 billion. These totals would mark changes of +0.28% and +14.41%, respectively, from last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Trip.com possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Trip.com currently has a Forward P/E ratio of 17.07. This signifies a discount in comparison to the average Forward P/E of 21.79 for its industry.

It is also worth noting that TCOM currently has a PEG ratio of 2.54. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Leisure and Recreation Services industry had an average PEG ratio of 1.91 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TCOM in the coming trading sessions, be sure to utilize Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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