Trip.com Shares Rise 2.48% as Earnings Estimates Drop
Trip.com Group Limited Sponsored ADR (TCOM) closed the latest trading session up 2.48% at $38.90, outperforming the S&P 500's daily gain of 0.6%. The Dow Jones Industrial Average added 0.83%, while the Nasdaq Composite rose 0.64% during the same period. This daily performance contrasts with the stock's recent trend, as shares had lost 1.91% over the past month. During that same one-month interval, the Consumer Discretionary sector declined by 0.15%, while the S&P 500 gained 1.34%.
Trip.com Group Limited Sponsored ADR (TCOM) closed the latest trading session up 2.48% at $38.90, outperforming the S&P 500's daily gain of 0.6%. The Dow Jones Industrial Average added 0.83%, while the Nasdaq Composite rose 0.64% during the same period. This daily performance contrasts with the stock's recent trend, as shares had lost 1.91% over the past month. During that same one-month interval, the Consumer Discretionary sector declined by 0.15%, while the S&P 500 gained 1.34%.
Investors are focused on the company's upcoming earnings release, where analysts expect Trip.com to report earnings of $1.18 per share. This figure represents a year-over-year decline of 69.51%. The latest consensus estimate projects revenue of $2.81 billion for the quarter, indicating an 8.93% increase compared to the same quarter of the previous year. For the full fiscal year, Zacks Consensus Estimates project earnings of $3.7 per share and revenue of $10.02 billion. These annual figures represent changes of -43.25% and +14.43%, respectively, from the prior year.
The Zacks Consensus EPS estimate has moved 2.13% lower within the past month, contributing to Trip.com's current Zacks Rank of #4 (Sell). The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and is a quantitative model that incorporates estimate changes. According to Zacks, #1 stocks have returned an average of +25% annually since 1988. The system gauges industry strength by measuring the average Zacks Rank of individual stocks within groups.
In terms of valuation, Trip.com is trading at a Forward P/E ratio of 10.27, which is a discount to the industry average Forward P/E of 15.33. The stock also carries a PEG ratio of 2.57, a measure that incorporates anticipated earnings growth rates. Leisure and Recreation Services stocks held an average PEG ratio of 1.13 based on yesterday's closing prices. This industry is part of the Consumer Discretionary sector and currently bears a Zacks Industry Rank of 169, placing it in the bottom 32% of all more than 250 industries tracked by Zacks.