TRIP.COM(TCOM) ZACKS·2024-07-08 17:01Core Viewpoint - Trip.com (TCOM) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Trip.com projects earnings of $3.08 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 12.4% [5]. - Over the past three months, the consensus estimate for Trip.com has risen by 4.9%, indicating a trend of increasing earnings estimates [5]. Impact of Earnings Estimates on Stock Prices - Changes in earnings estimates are strongly correlated with near-term stock price movements, largely due to institutional investors who adjust their valuations based on these estimates [3]. - The upgrade in Trip.com's rating suggests an improvement in its underlying business, which is expected to drive the stock price higher as investors respond to this trend [3][7]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade of Trip.com to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for price appreciation in the near term [6][7].