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MercadoLibre (MELI) Outpaces Stock Market Gains: What You Should Know
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MercadoLibre (MELI - Free Report) closed at $1,476.11 in the latest trading session, marking a +1.88% move from the prior day. This move outpaced the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 1.23%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 23.38% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.18% and the S&P 500's gain of 0.18% in that time.
Investors will be hoping for strength from MELI as it approaches its next earnings release. In that report, analysts expect MELI to post earnings of $0.40 per share. This would mark year-over-year growth of 190.91%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 83.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $5.93 billion. These totals would mark changes of +2675% and +49.15%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MELI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 42.78% lower. MELI is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that MELI has a Forward P/E ratio of 704.81 right now. This represents a premium compared to its industry's average Forward P/E of 57.98.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.
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MercadoLibre (MELI) Outpaces Stock Market Gains: What You Should Know
MercadoLibre (MELI - Free Report) closed at $1,476.11 in the latest trading session, marking a +1.88% move from the prior day. This move outpaced the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.32%, while the tech-heavy Nasdaq added 1.23%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 23.38% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.18% and the S&P 500's gain of 0.18% in that time.
Investors will be hoping for strength from MELI as it approaches its next earnings release. In that report, analysts expect MELI to post earnings of $0.40 per share. This would mark year-over-year growth of 190.91%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 83.49% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.06 per share and revenue of $5.93 billion. These totals would mark changes of +2675% and +49.15%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MELI. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 42.78% lower. MELI is currently a Zacks Rank #5 (Strong Sell).
Valuation is also important, so investors should note that MELI has a Forward P/E ratio of 704.81 right now. This represents a premium compared to its industry's average Forward P/E of 57.98.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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.