Is NASDAQ:TCOM suited for high growth investing?

Our stock screener has identified TRIP.COM GROUP LTD-ADR (NASDAQ:TCOM) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NASDAQ:TCOM.

What is the technical picture of NASDAQ:TCOM telling us.

Every day, ChartMill assigns a Technical Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various technical indicators and properties.

Overall TCOM gets a technical rating of 10 out of 10. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, TCOM is showing a nice and steady performance.

• The long and short term trends are both positive. This is looking good!
• When comparing the yearly performance of all stocks, we notice that TCOM is one of the better performing stocks in the market, outperforming 94% of all stocks. We also observe that the gains produced by TCOM over the past year are nicely spread over this period.
• TCOM is one of the better performing stocks in the Hotels, Restaurants & Leisure industry, it outperforms 91% of 133 stocks in the same industry.
• TCOM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so TCOM is lagging the market slightly.
• TCOM is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.

Our latest full technical report of TCOM contains the most current technical analsysis.

How does the Setup look for NASDAQ:TCOM

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NASDAQ:TCOM currently holds a 8 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, TCOM also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 75.06. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 72.30, a Stop Loss order could be placed below this zone. We notice that large players showed an interest for TCOM in the last couple of days, which is a good sign.

Why NASDAQ:TCOM may be interesting for high growth investors.

• TRIP.COM GROUP LTD-ADR has shown positive momentum in its earnings per share (EPS) on a quarter-to-quarter (Q2Q) basis, with a 20.52% increase. This reflects the company's successful execution of its business strategies and its commitment to delivering improved financial results.
• TRIP.COM GROUP LTD-ADR has achieved significant 1-year revenue growth of 122.0%, signaling its ability to capture market opportunities and drive top-line expansion. This growth indicates the company's effective execution and its potential for continued success.
• In the most recent financial report, TRIP.COM GROUP LTD-ADR reported a 20.52% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• TRIP.COM GROUP LTD-ADR has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• TRIP.COM GROUP LTD-ADR has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• The Return on Equity(ROE) of TRIP.COM GROUP LTD-ADR is 10.77%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• TRIP.COM GROUP LTD-ADR exhibits a favorable Debt-to-Equity ratio at 0.15. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• TRIP.COM GROUP LTD-ADR exhibits a favorable ownership structure, with an institutional shareholder ownership of 33.19%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• TRIP.COM GROUP LTD-ADR has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• TRIP.COM GROUP LTD-ADR has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 94.53 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. TRIP.COM GROUP LTD-ADR is well-positioned for potential price growth opportunities.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.