Airbnb, Booking.com, TripAdvisor and Expedia may be the bigger names in the travel booking industry. But savvy fund managers have focused their attention — and dollars — on India-based MakeMyTrip as it fuels up to extend an already massive move.
Propelled by four straight quarters of triple-digit earnings growth, MakeMyTrip makes the IBD 50 list of top growth stocks, alongside Trip.com.
Pulling off a feat that Airbnb, Booking, Expedia and all its industry peers failed to do, MakeMyTrip landed a spot on last month's list of new buys by the best mutual funds. Once again alone among its peers, the stock also made this month's list, which comes out in full on Friday.
Further making its case as a stock to keep an eye on, MakeMyTrip has joined the IBD Leaderboard watchlist as it zooms toward a breakout past a 77.30 buy point.
MakeMyTrip Looks To Book A Breakout
As Trip.com keeps soaring, fellow travel stocks Airbnb and Booking have found support at their 10-week moving averages as they form new setups. TripAdvisor is crafting a new flat base, but remains below that benchmark.
With its relative strength line soaring, MakeMyTrip continues to close in new highs.
This new formation comes after shares of MakeMyTrip soared 123% from an August breakout until reaching an all-time high in April. Only twice over the past six months did MakeMyTrip actually pierce its rising 50-day line, and then only briefly.
Showcasing demand for shares, MakeMyTrip sports a strong 1.5 up/down volume ratio and three quarters of rising fund ownership.
The stock rose just under 2% Monday, closing 73.75.
Explosive Earnings Drive Big Demand
With its three leading brands — MakeMyTrip, Goibibo and Redbus — the company has helped pioneer online travel bookings in India. MakeMyTrip's services covers everything from flights, hotels & homestays and holiday packages to cabs, buses and trains.
It has also launched new business segments that provide travel solutions to companies and employees, as well as a comprehensive travel suite for travel agents.
MakeMyTrip has generated average earnings growth of 302% over the last three quarters. In its last report in January, the company posted earnings of 35 cents a share, a 150% year-over-year gain. Sales for the quarter rose 26% to just over $214 million.
MakeMyTrip is set to report fiscal 2024 fourth quarter and full year earnings on May 15. Analysts expect 189% earnings growth to 14 cents a share. Consensus estimates call for a 20% rise in revenue to $199.5 million.
For the full fiscal year, Wall Street forecasts 138% earnings growth to $1.14 a share.
Follow Matthew Galgani on X, formerly Twitter, at @IBD_MGalgani.
