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11 July
Why the Market Dipped But Trip.com (TCOM) Gained Today

Trip.com (TCOM) closed the most recent trading day at $49.29, moving +0.61% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.88%. On the other hand, the Dow registered a gain of 0.08%, and the technology-centric Nasdaq decreased by 1.95%.

The the stock of travel services company has fallen by 3.53% in the past month, lagging the Consumer Discretionary sector's loss of 2.04% and the S&P 500's gain of 5.11%.

Analysts and investors alike will be keeping a close eye on the performance of Trip.com in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.79, signifying a 12.86% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.79 billion, indicating a 15.27% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.08 per share and a revenue of $7.3 billion, signifying shifts of +12.41% and +17.23%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for Trip.com. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Trip.com possesses a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Trip.com is currently trading at a Forward P/E ratio of 15.91. This signifies a discount in comparison to the average Forward P/E of 16.8 for its industry.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 33% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.