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Trip.com (TCOM) Outpaces Stock Market Gains: What You Should Know

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In the latest market close, Trip.com (TCOM - Free Report) reached $62.39, with a +1.48% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.71%. Elsewhere, the Dow saw an upswing of 1.03%, while the tech-heavy Nasdaq appreciated by 0.6%.

The travel services company's shares have seen an increase of 30.61% over the last month, surpassing the Consumer Discretionary sector's gain of 6.39% and the S&P 500's gain of 6.41%.

The upcoming earnings release of Trip.com will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.91, reflecting a 9% decrease from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.2 billion, indicating a 17.04% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $3.36 per share and a revenue of $7.35 billion, demonstrating changes of +22.63% and +18.09%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for Trip.com. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.74% upward. Trip.com currently has a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Trip.com is currently exchanging hands at a Forward P/E ratio of 18.3. This indicates a premium in contrast to its industry's Forward P/E of 17.86.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 69, this industry ranks in the top 28% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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