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Here's Why MakeMyTrip (MMYT) Fell More Than Broader Market

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In the latest trading session, MakeMyTrip (MMYT - Free Report) closed at $91.65, marking a -2.94% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.51%.

Shares of the online travel company have depreciated by 6.25% over the course of the past month, underperforming the Computer and Technology sector's gain of 2.98%, and the S&P 500's gain of 0.45%.

The investment community will be closely monitoring the performance of MakeMyTrip in its forthcoming earnings report. In that report, analysts expect MakeMyTrip to post earnings of $0.46 per share. This would mark year-over-year growth of 17.95%. Meanwhile, our latest consensus estimate is calling for revenue of $277.12 million, up 8.88% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.98 per share and revenue of $1.16 billion. These totals would mark changes of +26.92% and +18.78%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for MakeMyTrip. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MakeMyTrip currently has a Zacks Rank of #4 (Sell).

In terms of valuation, MakeMyTrip is currently trading at a Forward P/E ratio of 47.81. This signifies a premium in comparison to the average Forward P/E of 16.99 for its industry.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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