We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MercadoLibre (MELI) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,235.56, marking a +0.49% move from the previous day. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 10.47%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 2.74% over the past month, lagging the Retail-Wholesale sector's gain of 3.29% and outpacing the S&P 500's gain of 2.61% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. This is expected to be May 3, 2023. The company is expected to report EPS of $3.04, up 133.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.88 billion, up 28.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.55 per share and revenue of $12.94 billion, which would represent changes of +63.17% and +22.84%, respectively, from the prior year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.87% higher. MercadoLibre is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 79.06 right now. For comparison, its industry has an average Forward P/E of 21.5, which means MercadoLibre is trading at a premium to the group.
It is also worth noting that MELI currently has a PEG ratio of 1.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 1.17 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MercadoLibre (MELI) Gains As Market Dips: What You Should Know
In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,235.56, marking a +0.49% move from the previous day. This move outpaced the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 10.47%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 2.74% over the past month, lagging the Retail-Wholesale sector's gain of 3.29% and outpacing the S&P 500's gain of 2.61% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. This is expected to be May 3, 2023. The company is expected to report EPS of $3.04, up 133.85% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.88 billion, up 28.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.55 per share and revenue of $12.94 billion, which would represent changes of +63.17% and +22.84%, respectively, from the prior year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.87% higher. MercadoLibre is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 79.06 right now. For comparison, its industry has an average Forward P/E of 21.5, which means MercadoLibre is trading at a premium to the group.
It is also worth noting that MELI currently has a PEG ratio of 1.6. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 1.17 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.