MakeMyTrip (MMYT) ended the recent trading session at $47.57, demonstrating a +1.58% change from the preceding day's closing price. This change outpaced the S&P 500's 0.04% loss on the day. On the other hand, the Dow registered a loss of 0.57%, and the technology-centric Nasdaq increased by 0.04%.
The online travel company's stock has climbed by 25.58% in the past month, exceeding the Computer and Technology sector's gain of 20.43% and the S&P 500's gain of 12.24%.
The upcoming earnings release of MakeMyTrip will be of great interest to investors. The company is forecasted to report an EPS of $0.31, showcasing a 26.19% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $277.35 million, showing a 12.99% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.48 per share and revenue of $1.07 billion, which would represent changes of -5.13% and +9.68%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MakeMyTrip. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
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. Within the past 30 days, our consensus EPS projection has moved 5.5% lower. MakeMyTrip presently features a Zacks Rank of #4 (Sell).
Investors should also note MakeMyTrip's current valuation metrics, including its Forward P/E ratio of 27.23. This represents a premium compared to its industry average Forward P/E of 10.75.
Also, we should mention that MMYT has a PEG ratio of 1.62. 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. The Internet - Delivery Services industry had an average PEG ratio of 0.91 as trading concluded yesterday.
The Internet - Delivery Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 175, this industry ranks in the bottom 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MMYT in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).