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MercadoLibre (MELI) Dips More Than Broader Markets: What You Should Know
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MercadoLibre (MELI - Free Report) closed at $660.13 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.07% loss on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 15.38% over the past month, lagging the Retail-Wholesale sector's loss of 4.41% and the S&P 500's loss of 7.99% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. In that report, analysts expect MercadoLibre to post earnings of $1.70 per share. This would mark year-over-year growth of 24.09%. Meanwhile, our latest consensus estimate is calling for revenue of $2.49 billion, up 46.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.59 per share and revenue of $10.48 billion, which would represent changes of +294.61% and +48.22%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 2.91% lower. MercadoLibre is currently a Zacks Rank #3 (Hold).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 100.95. For comparison, its industry has an average Forward P/E of 21.79, which means MercadoLibre is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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MercadoLibre (MELI) Dips More Than Broader Markets: What You Should Know
MercadoLibre (MELI - Free Report) closed at $660.13 in the latest trading session, marking a -0.73% move from the prior day. This change lagged the S&P 500's 0.07% loss on the day. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 15.38% over the past month, lagging the Retail-Wholesale sector's loss of 4.41% and the S&P 500's loss of 7.99% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. In that report, analysts expect MercadoLibre to post earnings of $1.70 per share. This would mark year-over-year growth of 24.09%. Meanwhile, our latest consensus estimate is calling for revenue of $2.49 billion, up 46.24% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.59 per share and revenue of $10.48 billion, which would represent changes of +294.61% and +48.22%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 2.91% lower. MercadoLibre is currently a Zacks Rank #3 (Hold).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 100.95. For comparison, its industry has an average Forward P/E of 21.79, which means MercadoLibre is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 29% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.