Travel Stock Offers Two Buy Points After 118% Gain

MakeMyTrip (MMYT) has been on a tear this year, surging 118% year-to-date. As investors wonder where the stock is headed next, two buy points have emerged that could signal further upside. Let's delve into MMYT's recent performance, fundamentals, and the buy points that could drive the stock higher.


MMYT's rally has been fueled by a combination of factors, including its strategic positioning in the Indian travel market and effective management. The company's focus on the growing Indian market, coupled with its acquisition of Ixigo in 2021, has expanded its reach and customer base. Additionally, MMYT's strong Composite Rating of 98 indicates solid earnings growth and market performance, with an EPS Rating of 98 and a Relative Strength Rating of 96.


Despite the recent rally, MMYT offers two buy points that could provide attractive entry points for investors. The first buy point is at $106.84, while the second is at $110.49. Although the stock has pulled back after its Q2 results, it has managed to hold the 50-day moving average, demonstrating resilience. The company's strong fundamentals, including its sales growth ranging between 25% and 68% over the past eight quarters and earnings growth between 17% and 500%, support the case for further upside.


Mutual funds own 50% of outstanding MMYT shares, with more funds adding to their positions over the past five quarters. The Lord Abbett Developing Growth Fund (LAGWX) and the Alger Small Cap Growth Fund (ALSCX) hold shares of MMYT stock, indicating institutional confidence in the company's prospects.

In conclusion, MakeMyTrip's 118% gain year-to-date is a testament to its strategic positioning, effective management, and strong fundamentals. With two buy points in play and a late-stage base, MMYT presents an attractive opportunity for investors seeking growth and value in the travel sector. As the travel industry continues to rebound, MMYT's focus on the Indian market and its robust fundamentals position it well for continued success.