In the latest trading session, MakeMyTrip (MMYT) closed at $95.69, marking a +1.67% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.02%.
The stock of online travel company has fallen by 7.93% in the past month, lagging the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99%.
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The investment community will be paying close attention to the earnings performance of MakeMyTrip in its upcoming release. The company's upcoming EPS is projected at $0.46, signifying a 17.95% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $277.12 million, indicating a 8.88% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.98 per share and revenue of $1.16 billion, which would represent changes of +26.92% and +18.78%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MakeMyTrip. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MakeMyTrip is currently a Zacks Rank #5 (Strong Sell).
Digging into valuation, MakeMyTrip currently has a Forward P/E ratio of 47.66. This denotes a premium relative to the industry average Forward P/E of 15.51.
The Internet – Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
