MakeMyTrip (MMYT) ended the recent trading session at $105.25, demonstrating a +0.62% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.58%. At the same time, the Dow added 0.75%, and the tech-heavy Nasdaq gained 0.55%.

The online travel company's shares have seen an increase of 6.75% over the last month, surpassing the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84%.

The investment community will be paying close attention to the earnings performance of MakeMyTrip in its upcoming release. In that report, analysts expect MakeMyTrip to post earnings of $0.41 per share. This would mark year-over-year growth of 7.89%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $246.18 million, up 21.34% from the year-ago period.

Any recent changes to analyst estimates for MakeMyTrip should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.13% lower within the past month. As of now, MakeMyTrip holds a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that MakeMyTrip has a Forward P/E ratio of 50.9 right now. This denotes a premium relative to the industry's average Forward P/E of 19.86.

It's also important to note that MMYT currently trades at a PEG ratio of 7.88. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MMYT's industry had an average PEG ratio of 1.95 as of yesterday's close.

The Internet - Delivery Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 210, placing it within the bottom 16% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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

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