TravelCenters of America (TA) Gains As Market Dips: What You Should Know

Zacks
2023-03-14

In the latest trading session, TravelCenters of America (TA) closed at $84.53, marking a +0.15% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.

Heading into today, shares of the truck-stop operator had gained 79.54% over the past month, outpacing the Retail-Wholesale sector's loss of 6.73% and the S&P 500's loss of 5.39% in that time.

TravelCenters of America will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.66, down 35.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.28 billion, down 0.76% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.67 per share and revenue of $9.54 billion. These totals would mark changes of -57.08% and -12.07%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for TravelCenters of America. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 is currently a Zacks Rank #3 (Hold).

Investors should also note TravelCenters of America's current valuation metrics, including its Forward P/E ratio of 18.07. This represents a discount compared to its industry's average Forward P/E of 18.17.

The Retail - Convenience Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 21, putting it in the top 9% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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