Why TripAdvisor (TRIP) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.
Headquartered in Massachusetts, TripAdvisor, Inc. is one of the largest online travel research companies in the world. The company provides a platform for users to share reviews, ratings and opinions on hotels, destinations, attractions and restaurants. The company also facilitates bookings between hotel suppliers and consumers using its web portals.
TRIP is a Zacks Rank #2 (Buy) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 8.8X for the current fiscal year compared to the Internet - Commerce industry's P/E 24.8X. Additionally, TRIP has a PEG Ratio of 0.9 and a Price/Cash Flow ratio of 10.8X. Value investors should also note TRIP's Price/Sales ratio of 1X.
Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2025. The Zacks Consensus Estimate has increased $0.11 to $1.47. TRIP has an average earnings surprise of 59.8%.
Investors should take the time to consider TRIP for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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TripAdvisor, Inc. (TRIP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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