Online travel services provider MakeMyTrip (MMYT) is just pennies below a buy point from a consolidation. Shares of the India-based travel stock scored a breakout from this level on Nov. 6, and are up a whopping 138% year to date.
↑ XMakeMyTrip has been a pioneer of online travel bookings in India. Its covers most aspects of the travel experience, from flights, hotels and holiday packages to cabs, buses and trains.
The travel stock has been barreling higher since August of 2023, and has managed to stay above its 10-week line for a majority of the time since. The stock has pulled back only twice to form bases along the way. In May of 2024, shares slid to form a seven-week cup base before breaking out and pushing higher.
Then in September, the stock began pulling back again to form the current consolidation with a 110.49 entry. All the strength in this stock has left it with a third-stage base. Earlier bases are known to net higher gains, based on IBD's research.
While shares fell after results for its September-ended quarter came out Oct. 23, the travel stock managed to hold its 50-day moving average. As it was forming the current consolidation, shares also traded with tight weekly closes for four weeks, offering an early buy point of 106.84.
With a near-perfect 98 Composite Rating and strong 95 Relative Strength Rating, MakeMyTrip checks several boxes both fundamentally and technically. It also ranks No. 1 in Investor's Business Daily's travel booking industry group, reflecting its leadership qualities. The group itself ranks No. 8 out of IBD's 197 groups.
On Oct. 23, MakeMyTrip reported results for its September-ended quarter that beat expectations. The company reported quarterly earnings of 36 cents per share, beating estimates of 33 cents per share. The results were up 44% on a year-over-year basis. Revenue came in at $211 million, up 25%.
Sales growth over the past eight quarters has ranged between 25% and 68% while earnings have grown between 17% and 500%. Mutual funds have been adding the stock over the past five quarters. The Lord Abbett Developing Growth Fund (LAGWX) and the Alger Small Cap Growth Fund (ALSCX) — both part of the IBD Mutual Fund Index — hold shares.
Earlier this month, it was announced that MakeMyTrip inked a deal to acquire the Happay Expense Management Platform from CRED. This will strengthen MakeMyTrip's ability to provide comprehensive solutions for corporate travel and expense management.
Co-founder and CEO Rajesh Magow said in a news release, "The acquisition of Happay's brand and expense management platform is a natural next step in our strategy to lead this space. By integrating Happay's expertise, which spans over 900 corporate clients, MakeMyTrip is set to redefine the benchmarks once again in corporate travel and expense management in India."
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