Here's Why MakeMyTrip (MMYT) Fell More Than Broader Market

In the latest close session, MakeMyTrip (MMYT) was down 6.95% at $39.78. The stock's change was less than the S&P 500's daily loss of 1.51%. Meanwhile, the Dow lost 0.97%, and the Nasdaq, a tech-heavy index, lost 2.01%.

Prior to today's trading, shares of the online travel company had lost 23.44% lagged the Computer and Technology sector's loss of 1.84% and the S&P 500's loss of 3.63%.

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 $0.35, reflecting a 16.67% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $277.35 million, up 12.99% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.52 per share and revenue of $1.07 billion, which would represent changes of -2.56% and +9.68%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MakeMyTrip. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. Currently, MakeMyTrip is carrying a Zacks Rank of #3 (Hold).

Looking at valuation, MakeMyTrip is presently trading at a Forward P/E ratio of 28.22. This valuation marks a premium compared to its industry average Forward P/E of 9.54.

Also, we should mention that MMYT has a PEG ratio of 1.22. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Delivery Services stocks are, on average, holding a PEG ratio of 0.93 based on yesterday's closing prices.

The Internet - Delivery Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 18, putting it in the top 8% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

#1 Semiconductor Stock to Buy (Not NVDA)

The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.

One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MakeMyTrip Limited (MMYT): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research