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

Zacks
2023-01-06

TravelCenters of America (TA) closed the most recent trading day at $44.25, moving -1.43% from the previous trading session. This change lagged the S&P 500's daily loss of 1.17%. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.

Heading into today, shares of the truck-stop operator had lost 2.96% over the past month, outpacing the Retail-Wholesale sector's loss of 4.27% and the S&P 500's loss of 5.25% 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 $1.12, up 25.84% from the prior-year quarter. 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 revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 9.61. This valuation marks a discount compared to its industry's average Forward P/E of 15.24.

The Retail - Convenience Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 1, putting 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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