Travelport Worldwide Limited (TVPT): Alive and Kicking?

If you can handle volatility, Travelport Worldwide Limited (NYSE:TVPT) is the stock to watch now. The stock closed lower on 14 March. The shares dropped 0 points or 0 percent at $15.7 with a light trade volume of 2.086 million shares. After opening the session at $15.72, the shares went as high as $15.72 and as low as $15.69, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.98 billion and now has 126.35 million shares outstanding. Travelport Worldwide Limited (TVPT) stock has lost -0.38 percent of market value in 21 trading days.

TVPT stock has a trailing 3-year beta of 0.28, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.34 a share in the trailing twelve months. The stock’s value has surged 0.51 percent year to date (YTD) against a rise of 8.58 percent in 12 month’s time. The company’s shares still trade -22.66 percent away from its 1-year high of $20.30 and 18.31 percent up from 52-week low of $13.27. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Travelport Worldwide Limited (TVPT) will probably climb 4.59 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $19-month high price target. This represents a whopping 21.02 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $15.88, which represents a return potential of 1.15 percent when compared to the closing price of the stock of $15.7 on Thursday, March 14. The lowest price target for the stock is $15.75 — slightly more than 0.32 percent from TVPT’s current share price.

History has shown that shares in Travelport Worldwide Limited have gone up on 9 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. Investors will get their next glimpse of TVPT’s Q1 earnings on May 06. Analysts are forecasting revenue to climb 2.2 percent to $693M in the fiscal first quarter, while earnings are seen soaring by nearly -11.36 percent to $0.39 per share. It earned $0.31 per share, better than the $0.25, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $589M, better than the $580M analysts expected. Earnings are estimated to increase by -73.9 percent this year, 11.84 percent next year and continue to increase by 3.61 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $15.69. Below this, the next support is placed in the zone of $15.67. Till the time, the TVPT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.52 on daily chart, which may remain a cause for concern. If the price breaks below $15.67 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $15.72 mark may result into a pull-back move towards $15.73 level.

Shares of Travelport Worldwide Limited (TVPT) are trading at a P/E ratio of 45.58 times earnings reported for the past 12 months. The industry TVPT operates in has an average P/E of 47.04. Its P/E ratio went as low as 10X and as high as 105.12 over the 5-year span.Further, it is sporting a 0.78 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.29. 36.1 percent is the gross profit margin for Travelport Worldwide Limited and operating margin sits at 7.4 percent. Along with this, the net profit margin is 2.8 percent.