TravelCenters of America (TA) closed the most recent trading day at $58.02, moving -0.5% from the previous trading session. This change was narrower than the S&P 500's 1.03% loss on the day. Elsewhere, the Dow lost 1.15%, while the tech-heavy Nasdaq added 0.33%.
Heading into today, shares of the truck-stop operator had gained 7.66% over the past month, outpacing the Retail-Wholesale sector's loss of 3.58% and the S&P 500's loss of 3.51% in that time.
TravelCenters of America will be looking to display strength as it nears its next earnings release, which is expected to be November 1, 2022. The company is expected to report EPS of $2.01, up 32.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.73 billion, up 40.55% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.08 per share and revenue of $10.5 billion. These totals would mark changes of +96.59% and +43.11%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for TravelCenters of America. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.88% higher within the past month. TravelCenters of America is currently a Zacks Rank #1 (Strong Buy).
Digging into valuation, TravelCenters of America currently has a Forward P/E ratio of 7.22. This valuation marks a discount compared to its industry's average Forward P/E of 13.71.
The Retail - Convenience Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 2, which puts it in the top 1% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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