TravelCenters of America (TA) Dips More Than Broader Markets: What You Should Know

Zacks
2023-02-15

TravelCenters of America (TA) closed the most recent trading day at $47.69, moving -0.65% from the previous trading session. This move lagged the S&P 500's daily loss of 0.03%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq gained 3.16%.

Coming into today, shares of the truck-stop operator had gained 0.67% in the past month. In that same time, the Retail-Wholesale sector gained 0.38%, while the S&P 500 gained 3.6%.

TravelCenters of America will be looking to display strength as it nears its next earnings release. In that report, analysts expect TravelCenters of America to post earnings of $1.12 per share. This would mark year-over-year growth of 25.84%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.53 billion, up 24.43% from the year-ago period.

Any recent changes to analyst estimates for TravelCenters of America should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TravelCenters of America currently has a Zacks Rank of #3 (Hold).

Investors should also note TravelCenters of America's current valuation metrics, including its Forward P/E ratio of 10.28. Its industry sports an average Forward P/E of 15.2, so we one might conclude that TravelCenters of America is trading at a discount comparatively.

The Retail - Convenience Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 101, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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