In the latest close session, MakeMyTrip (MMYT) was up +2.17% at $94.34. The stock's change was more than the S&P 500's daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Prior to today's trading, shares of the online travel company had lost 7.69% lagged the Computer and Technology sector's gain of 8.78% and the S&P 500's gain of 3.94%.
The investment community will be paying close attention to the earnings performance of MakeMyTrip in its upcoming release. The company is expected to report EPS of $0.45, up 25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $264.28 million, up 25.26% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $2.16 per share and a revenue of $1.19 billion, demonstrating changes of +38.46% and +21.79%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for MakeMyTrip. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, MakeMyTrip is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, MakeMyTrip is currently trading at a Forward P/E ratio of 42.75. Its industry sports an average Forward P/E of 14.77, so one might conclude that MakeMyTrip is trading at a premium comparatively.
The Internet – Delivery Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
