Is Trip.com (TCOM) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS·2024-10-14 17:46

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility. Trip.com (TCOM) is highlighted as a strong growth stock based on its favorable Growth Score and Zacks Rank [1]. Earnings Growth - Trip.com has a historical EPS growth rate of 37.2%, with projected EPS growth of 22.6% for the current year, significantly outperforming the industry average of 13.8% [3]. Cash Flow Growth - The company exhibits a remarkable year-over-year cash flow growth of 374.8%, compared to the industry average of -21.4%. Over the past 3-5 years, Trip.com has maintained an annualized cash flow growth rate of 20.9%, while the industry average stands at -1.3% [4]. Earnings Estimate Revisions - The current-year earnings estimates for Trip.com have been revised upward, with the Zacks Consensus Estimate increasing by 1.7% over the past month, indicating a positive trend in earnings estimate revisions [5]. Overall Positioning - Trip.com has achieved a Growth Score of B and a Zacks Rank of 2, positioning it well for potential outperformance in the growth stock category, making it an attractive option for growth investors [6].