MakeMyTrip (MMYT) Stock Sinks As Market Gains: Here's Why

Core Viewpoint - MakeMyTrip's stock has recently underperformed compared to major indices, and upcoming earnings are anticipated to be a focal point for investors [1][2]. Group 1: Stock Performance - MakeMyTrip's stock closed at $74.32, down 3.01%, which is less than the S&P 500's daily gain of 0.26% [1] - Prior to the latest trading session, MakeMyTrip shares had declined by 9.18%, underperforming the Computer and Technology sector's gain of 1.58% and the S&P 500's gain of 1.57% [1]. Group 2: Upcoming Earnings - The earnings report for MakeMyTrip is expected on January 21, 2026, with an anticipated EPS of $0.43, reflecting a 10.26% increase from the prior-year quarter [2]. - Quarterly revenue is projected to be $313.62 million, which is a 17.3% increase from the same period last year [2]. Group 3: Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict earnings of $1.55 per share and revenue of $1.11 billion, indicating changes of -0.64% and +13.49% respectively from the previous year [3]. - Recent changes to analyst estimates suggest a positive outlook on business performance and profit potential [3]. Group 4: Analyst Ratings - The Zacks Rank system currently rates MakeMyTrip at 4 (Sell), following a 5.56% decline in the Zacks Consensus EPS estimate over the past month [5]. - The Zacks Rank system has a strong historical performance, with 1 stocks averaging an annual return of +25% since 1988 [5]. Group 5: Valuation Metrics - MakeMyTrip is trading with a Forward P/E ratio of 49.6, significantly higher than the industry average of 13.51, indicating a premium valuation [6]. - The Internet - Delivery Services industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 190, placing it in the bottom 23% of over 250 industries [6].