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MakeMyTrip (MMYT) Laps the Stock Market: Here's Why

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MakeMyTrip (MMYT - Free Report) ended the recent trading session at $100.42, demonstrating a +1.67% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.24%, and the technology-dominated Nasdaq saw an increase of 0.24%.

The stock of online travel company has fallen by 6.01% in the past month, lagging the Computer and Technology sector's gain of 11.61% and the S&P 500's gain of 6.6%.

The investment community will be paying close attention to the earnings performance of MakeMyTrip in its upcoming release. It is anticipated that the company will report an EPS of $0.46, marking a 17.95% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $277.12 million, indicating a 8.88% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $1.98 per share and a revenue of $1.16 billion, demonstrating changes of +26.92% and +18.78%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for MakeMyTrip. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.3% lower. MakeMyTrip is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note MakeMyTrip's current valuation metrics, including its Forward P/E ratio of 50.01. This denotes a premium relative to the industry average Forward P/E of 17.82.

The Internet - Delivery Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 54, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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