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TravelCenters of America (TA) Gains But Lags Market: What You Should Know

TravelCenters of America (TA) closed at $86.61 in the latest trading session, marking a +0.13% move from the prior day. The stock lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow gained 0.98%, and the Nasdaq, a tech-heavy index, added 0.62%.

Heading into today, shares of the truck-stop operator had gained 2.04% over the past month, lagging the Retail-Wholesale sector's gain of 3.65% and the S&P 500's gain of 3.71% in that time.

TravelCenters of America will be looking to display strength as it nears its next earnings release. On that day, TravelCenters of America is projected to report earnings of $1.12 per share, which would represent year-over-year growth of 8.74%. Our most recent consensus estimate is calling for quarterly revenue of $2.28 billion, down 0.76% from the year-ago period.

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.

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It is also important to note the recent changes to analyst estimates for TravelCenters of America. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 sporting a Zacks Rank of #3 (Hold).

Investors should also note TravelCenters of America's current valuation metrics, including its Forward P/E ratio of 18.52. For comparison, its industry has an average Forward P/E of 18.47, which means TravelCenters of America is trading at a premium to the group.

The Retail - Convenience Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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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TravelCenters of America LLC (TA) : Free Stock Analysis Report

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