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Trip.com (TCOM) Stock Moves -0.52%: What You Should Know

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In the latest trading session, Trip.com (TCOM - Free Report) closed at $65, marking a -0.52% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.42%, while the tech-heavy Nasdaq depreciated by 1.89%.

The travel services company's stock has dropped by 12.95% in the past month, falling short of the Consumer Discretionary sector's loss of 5.46% and the S&P 500's loss of 1.7%.

Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.51, marking an 8.93% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.7 billion, up 17.03% from the year-ago period.

Investors should also take note of any recent adjustments to analyst estimates for Trip.com. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Trip.com is carrying a Zacks Rank of #1 (Strong Buy).

In the context of valuation, Trip.com is at present trading with a Forward P/E ratio of 16.42. This denotes a discount relative to the industry's average Forward P/E of 17.61.

Also, we should mention that TCOM has a PEG ratio of 0.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Leisure and Recreation Services stocks are, on average, holding a PEG ratio of 0.81 based on yesterday's closing prices.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 25, putting it in the top 10% 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.

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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