MakeMyTrip (MMYT) ended the recent trading session at $41.03, demonstrating a -1.61% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.26%. Meanwhile, the Dow experienced a rise of 0.17%, and the technology-dominated Nasdaq saw a decrease of 0.97%.
The online travel company's stock has dropped by 9.92% in the past month, falling short of the Computer and Technology sector's gain of 0.37% and the S&P 500's gain of 0.23%.
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 $0.1, down 76.19% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $270.73 million, indicating a 0.7% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $0.98 per share and a revenue of $1.14 billion, demonstrating changes of -37.18% and +9.24%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for MakeMyTrip. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 34.25% lower. MakeMyTrip is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at valuation, MakeMyTrip is presently trading at a Forward P/E ratio of 42.7. For comparison, its industry has an average Forward P/E of 10.37, which means MakeMyTrip is trading at a premium to the group.
The Internet - Delivery Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 227, this industry ranks in the bottom 7% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MakeMyTrip Limited (MMYT): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).