Trip.com Anticipates Earnings Report Amidst Mixed Market Performance
The latest trading session found Trip.com (TCOM) at $66.68, marking a +1.83% increase from the previous day’s close. This performance exceeded the S&P 500’s modest gain of 0.1%. Conversely, the Dow advanced by 0.69%, while the tech-heavy Nasdaq saw a slight boost of 0.06%.
Monthly Performance and Sector Comparison
As we reflect on the past month, Trip.com has observed a gain of 0.69%. However, this growth falls short compared to the Consumer Discretionary sector’s rise of 5.33% and the S&P 500’s increase of 4.37% during the same period.
Upcoming Earnings Announcement
Investors are keenly awaiting Trip.com’s upcoming earnings release on November 18, 2024. Analysts forecast an Earnings Per Share (EPS) of $0.91, representing a 9% decline from the same quarter last year. The revenue is predicted to reach $2.2 billion, which would be a 16.65% increase compared to the previous year’s quarter.
Long-term Projections and Estimates
For the entire fiscal year, Zacks Consensus Estimates are projecting an EPS of $3.36 and a revenue of $7.35 billion, indicating increases of +22.63% and +18.09%, respectively, from the prior year.
Analyst Estimate Changes and Market Outlook
Investors should pay attention to any recent changes in analyst estimates for Trip.com, as these often reflect shifting business trends. Positive revisions can signal an optimistic view of the company’s future performance.
Zacks Rank and Valuation
Recent research shows that alterations in estimates correlate with forthcoming stock performance. The Zacks Rank system incorporates these revisions into an actionable rating model, ranging from #1 (Strong Buy) to #5 (Strong Sell). Historically, stocks ranked #1 have delivered an average annual return of +25% since 1988. As of now, Trip.com holds a Zacks Rank of #3 (Hold) with no changes to its EPS estimate over the last month.
Comparative Valuation
Currently, Trip.com trades at a Forward P/E ratio of 19.49, which is relatively low compared to the industry average of 21.72. The Leisure and Recreation Services industry, part of the Consumer Discretionary sector, ranks 66 in Zacks’ Industry Rank, placing it in the top 27% of over 250 industries.
Understanding Industry Performance
This Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of stocks in those areas. Research indicates that the highest-rated industries outperform the lower-rated ones by a factor of two to one.
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The views and opinions expressed herein are those of the author and may not reflect the views of Nasdaq, Inc.
