The latest trading session saw MakeMyTrip (MMYT – Free Report) ending at $114.53, denoting a -1.45% adjustment from its last day’s close. The stock’s performance was behind the S&P 500’s daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.77%, while the tech-heavy Nasdaq depreciated by 1.49%.
Heading into today, shares of the online travel company had gained 1.84% over the past month, lagging the Computer and Technology sector’s gain of 5.27% and outpacing the S&P 500’s gain of 0.4% in that time.
Analysts and investors alike will be keeping a close eye on the performance of MakeMyTrip in its upcoming earnings disclosure. The company is expected to report EPS of $0.44, up 25.71% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $256.68 million, up 19.82% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.61 per share and a revenue of $968.67 million, signifying shifts of +31.97% and +23.79%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for MakeMyTrip. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. MakeMyTrip currently has a Zacks Rank of #4 (Sell).
In terms of valuation, MakeMyTrip is currently trading at a Forward P/E ratio of 72.18. This represents a premium compared to its industry’s average Forward P/E of 29.15.
Meanwhile, MMYT’s PEG ratio is currently 5.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. By the end of yesterday’s trading, the Internet – Delivery Services industry had an average PEG ratio of 1.36.
The Internet – Delivery Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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