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

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The most recent trading session ended with Trip.com (TCOM - Free Report) standing at $71.27, reflecting a -1.06% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.72%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.35%.

Heading into today, shares of the travel services company had gained 10.24% over the past month, outpacing the Consumer Discretionary sector's gain of 2.95% and the S&P 500's gain of 1.02% in that time.

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 $0.52, down 7.14% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 16.34% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Trip.com. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.28% higher within the past month. Trip.com is currently a Zacks Rank #1 (Strong Buy).

From a valuation perspective, Trip.com is currently exchanging hands at a Forward P/E ratio of 18.05. This denotes a discount relative to the industry's average Forward P/E of 19.74.

We can additionally observe that TCOM currently boasts a PEG ratio of 0.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TCOM's industry had an average PEG ratio of 0.84 as of yesterday's close.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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