Welcome aboard! People are taking to the skies, seas, roads and trains again as the memory of the pandemic fades in the rearview mirror. Travel stocks as a group have seen strong gains this year. Travel booking company MakeMyTrip is among those benefiting from the trend. On Wednesday, the Relative Strength (RS) Rating for MakeMyTrip stock leapt 19 points, rising from 61 the day before to 80 on strong earnings.
MakeMyTrip Stock Joins Top Echelon Group
The small-cap company passed a milestone along the way. Market research shows that the best stocks tend to have an 80 or higher RS Rating as they launch their biggest climbs. MakeMyTrip stock is in that elite group now.
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Among its other key ratings, India-based MakeMyTrip stock boasts a 91 Composite Rating showing overall strength. Top growth companies often have a 90 or better Composite Rating. Its Earnings Per Share Rating is a milder 74, which could use improvement. However, it boasts a strong B+ Accumulation/Distribution Rating, showing that big funds are fairly heavy buyers of its stock.
For its fiscal first quarter, announced on Tuesday, the company reported that revenue grew 38% year over year to $196.7 million. That was down from 68% growth the prior quarter but still robust. Earnings per share was a different story. Its EPS soared 500% to 30 cents, up from 163% growth the prior report. Gross bookings jumped 31.4%, the company said in its earnings release.
Just A Few Points From Buy Point
MakeMyTrip stock is working on a consolidation with a 34.68 buy point. See if the stock can clear the breakout price in heavy trading. It dropped to a 2023 low 22.50 on April 25 and began rising. Wednesday afternoon MakeMyTrip stock was up more than 4%.
MakeMyTrip stock holds the No. 5 rank among its peers in the 19-stock Leisure-Travel Booking industry group. China-based travel agency Trip.com is No. 2 in the group. Norwalk, Conn.-based Booking Holdings holds the No. 1 spot among the group's highest-rated stocks.
When you're researching the best stocks to buy and watch, keep a close on eye on relative price strength.
IBD's proprietary Relative Strength Rating measures market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks holds up against all the other stocks in our database.
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