Despegar (DESP) Stock

Despegar.com, Corp. has shown strong growth with good tourism growth in Latin America, boosted further by market share gains, acquisitions, and B2B revenue growth. The Q3 results represented good financial momentum with greatly improving margins. The earnings growth tailwinds are in part moderated by a weaker mid- to long-term take rate outlook, as well as elevated currency risks.

Here is how Despegar.com (DESP) and International Consolidated Airlines Group SA (ICAGY) have performed compared to their sector so far this year.

Despegar.com (DESP) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Despegar.com (DESP) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, DESP crossed above the 20-day moving average, suggesting a short-term bullish trend.

Despegar.com is a strong buy due to its robust constant-currency bookings growth and market-leading position in Latin America, despite FX headwinds. The company benefits from exposure to fast-growing emerging economies, increasing middle-class travel in Latin America, and lucrative vacation package deals, boosting its take rates. U.S. interest rate cuts could ease FX headwinds, enhancing Despegar's appeal as a value stock with a low 5.2x EV/FY24 adjusted EBITDA multiple.

Despegar.com, Corp. (NYSE:DESP ) Q2 2024 Earnings Conference Call August 15, 2024 4:30 PM ET Company Participants Luca Pfeifer - Investor Relations Damian Scokin - Chief Executive Officer Sebastian Mackinnon - Chief Partner and Corporate Affairs Manager Gonzalo Estebarena - Chief Technology Officer Amit Singh - Chief Financial Officer Conference Call Participants Naved Khan - B. Riley Securities Andrew Ruben - Morgan Stanley Jacob Seed - TD Cowen Brett Knoblauch - Cantor Fitzgerald Operator Good morning and welcome to Despegar's First Quarter 2024 Earnings Conference Call.

EAT, VRT, and DESP made it to the Zacks Rank #1 (Strong Buy) growth stocks list on July 30, 2024.

Here is how Despegar.com (DESP) and SkyWest (SKYW) have performed compared to their sector so far this year.

SIMO, DESP and PGR made it to the Zacks Rank #1 (Strong Buy) growth stocks list on July 25, 2024.