TravelCenters of America (TA) Outpaces Stock Market Gains: What You Should Know

Zacks
2023-02-02

TravelCenters of America (TA) closed at $46.11 in the latest trading session, marking a +1.3% move from the prior day. This move outpaced the S&P 500's daily gain of 1.05%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 9.7%.

Coming into today, shares of the truck-stop operator had gained 4.31% in the past month. In that same time, the Retail-Wholesale sector gained 11.69%, while the S&P 500 gained 6.27%.

Wall Street will be looking for positivity from TravelCenters of America as it approaches its next earnings report date. On that day, TravelCenters of America is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 25.84%. Our most recent consensus estimate is calling for quarterly revenue of $2.53 billion, up 24.43% from the year-ago period.

Investors should also note any recent changes to analyst estimates for TravelCenters of America. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. TravelCenters of America is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TravelCenters of America is holding a Forward P/E ratio of 9.75. This valuation marks a discount compared to its industry's average Forward P/E of 15.83.

The Retail - Convenience Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 3, which puts it in the top 2% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TA in the coming trading sessions, be sure to utilize Zacks.com.

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