Stock of the Day

October 20, 2021

Trip.com Group (TCOM)

$67.02
+$0.91 (+1.4%)
Market Cap: $42.58B

About Trip.com Group

Trip.com Group Limited, through its subsidiaries, operates as a travel service provider for accommodation reservation, transportation ticketing, packaged tours and in-destination, corporate travel management, and other travel-related services in China and internationally. The company acts as an agent for hotel-related transactions and selling air tickets, as well as provides train, long-distance bus, and ferry tickets; travel insurance products, such as flight delay, air accident, and baggage loss coverage; and air-ticket delivery, online check-in and seat selection, express security screening, real-time flight status tracker, and airport VIP lounge services. It also provides independent leisure travelers bundled packaged-tour products comprising group, semi-group, and customized and packaged tours with various transportation arrangements, including air, cruise, bus, and car rental services. In addition, the company offers integrated transportation and accommodation services; destination transportation and ticket, activity, insurance, visa, and tour guide services; user support, supplier management, and customer relationship management services; and in-destination products and services. Further, It provides its corporate clients with business visit, incentive trip, meeting and conference, travel data collection and analysis, and industry benchmarking solutions; and Corporate Travel Management System, an online platform that integrates information management, online booking and authorization, online inquiry, and travel reporting systems. Additionally, the company offers online advertising and financial services, such as marketing planning and travel media services. It operates under the Ctrip, Qunar, Trip.com, and Skyscanner brands. The company was formerly known as Ctrip.com International, Ltd. and changed its name to Trip.com Group Limited in October 2019. Trip.com Group Limited was founded in 1999 and is based in Singapore.

Trip.com Group Bull Case

Here are some ways that investors could benefit from investing in Trip.com Group Limited:

  • Recent upgrades from multiple analysts, including a "buy" rating from StockNews.com and a "strong-buy" from HSBC Global Res, indicate strong market confidence in the stock's potential for growth.
  • The stock price has recently increased to $69.22, reflecting a 1.0% rise, which suggests positive momentum and investor interest.
  • Trip.com Group Limited has a solid market capitalization of $44.58 billion, indicating a strong position in the travel service industry, which can provide stability and growth opportunities.
  • Analysts have set a consensus target price of $74.78, which is higher than the current stock price, suggesting potential for price appreciation.
  • The company has a low debt-to-equity ratio of 0.14, indicating a strong balance sheet and lower financial risk, which is attractive for investors looking for stability.

Trip.com Group Bear Case

Investors should be bearish about investing in Trip.com Group Limited for these reasons:

  • Despite recent upgrades, the stock has not yet reached its 52-week high of $77.18, which may indicate potential volatility and uncertainty in the market.
  • The company's P/E ratio of 20.72, while not excessively high, may suggest that the stock is priced at a premium compared to its earnings, which could deter value-focused investors.
  • Market fluctuations and uncertainties in the travel industry, particularly post-pandemic, could impact Trip.com Group Limited's performance and growth prospects.
  • Analysts have differing target prices, with some estimates as high as $85.00, which may create confusion and uncertainty about the stock's true value.
  • The company's beta of 0.37 indicates lower volatility compared to the market, but this could also mean less potential for high returns, which may not appeal to aggressive investors.

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