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MakeMyTrip Eyes Earnings Boost with Strong Revenue Estimates

Investors are keenly awaiting MakeMyTrip's upcoming earnings report, with strong revenue estimates indicating a potential financial boost. The company's performance relative to market trends may affect investor sentiment and stock prices.

Date: 
AI Rating:   6

MakeMyTrip (MMYT) has closed the last trading day at $94.96, with a modest increase of +0.48% which is notable since it outperformed the S&P 500's loss of 0.13%. Despite this positive movement, the stock has declined by 2.54% over the past month, lagging behind both the Computer and Technology sector's gain of 2.7% and the S&P 500's gain of 2.43%.

Looking forward, MakeMyTrip is poised for an important earnings disclosure. The consensus estimate for the upcoming quarter anticipates revenue of $216.03 million, which marks an impressive increase of 28.06% compared to the same quarter the previous year. Additionally, the Zacks Consensus Estimates for the full year predict earnings of $1.71 per share and total revenue of $946.59 million. This signifies a yearly growth of +40.16% in EPS and +20.97% in revenue.

Recent changes in estimates, a key point of interest for investors, have seen no revisions in the average EPS estimate over the last 30 days, suggesting stable expectations from analysts regarding the company's near-term performance. MakeMyTrip currently holds a Zacks Rank of #3 (Hold), indicating a balanced outlook without strong buy or sell signals.

The valuation metrics show that MakeMyTrip is trading at a Forward P/E ratio of 55.27, which is significantly higher than the industry's average Forward P/E of 23.99, highlighting a premium valuation that investors should consider. Furthermore, the PEG ratio stands at 4.02, above the industry's average of 2.31, suggesting that the stock may be overvalued relative to its growth rate. The Internet - Delivery Services industry, of which MakeMyTrip is a part, is currently ranked 169th within the Zacks Industry Rank, placing it in the bottom 34% of over 250 industries.

Investors should be mindful that the Zacks Rank system has previously demonstrated an average annual return of +25% for #1 rated stocks, and any upward revisions in analyst estimates may reflect increasing optimism regarding the company’s ability to generate profits, which could influence stock prices positively.

Stocks:  MMYT