MakeMyTrip (MMYT) ended the recent trading session at $57.35, demonstrating a -1.58% change from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.72%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, added 1.12%.
Prior to today's trading, shares of the online travel company had gained 32.16% outpaced the Computer and Technology sector's loss of 6.12% and the S&P 500's loss of 0.9%.
Analysts and investors alike will be keeping a close eye on the performance of MakeMyTrip in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.1, reflecting a 76.19% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $270.73 million, up 0.7% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.98 per share and a revenue of $1.14 billion, indicating changes of -37.18% and +9.24%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for MakeMyTrip. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MakeMyTrip currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that MakeMyTrip has a Forward P/E ratio of 59.66 right now. Its industry sports an average Forward P/E of 10.62, 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. This industry, currently bearing a Zacks Industry Rank of 233, finds itself in the bottom 6% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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MakeMyTrip Limited (MMYT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).