Our Stock of the Week is Depegar.com (DESP). DESP is an Argentina-based company that provides online travel services to 2.5 million customers in Latin America. Currently, about 62% of its revenues come from hotel bookings and 37% from airlines. Its largest market is Brazil, which accounts for around 40% of its revenue.
In its most recent quarter, the company saw revenue grow 9.5% over last year, and EPS jumped 74% to $0.29. The company is expected to earn $0.96 in 2024 and grow that 34% in 2025 to $1.29. The trailing PE is just 17, which makes it a good growth story.
The Latin American market is far behind the US, so there is plenty of room for growth. DESP is 15% owned by Expedia (EXPE) and enjoys benefits from that relationship.
DESP is not unlike MakeMyTrip (MMYT), which is an India-based travel company. MMYT has been performing great and is hitting new highs, almost double in 2024.
Technically, the stock has been performing steadily. After a good December quarter, the stock gapped up and then traded in a range before gapping up on a good first-quarter report. We are looking for some consolidation to take place and will look to take advantage of pullbacks, especially if the earnings gap is filled. As always, we don’t intend to chase strength on Monday morning, but we will look to trade aggressively into volatility.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in DESP. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
