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MercadoLibre (MELI) Dips More Than Broader Markets: What You Should Know
In the latest trading session, MercadoLibre (MELI - Free Report) closed at $933.76, marking a -1.53% move from the previous day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 10.53% over the past month, outpacing the Retail-Wholesale sector's loss of 3.44% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. In that report, analysts expect MercadoLibre to post earnings of $2.41 per share. This would mark year-over-year growth of 25.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.67 billion, up 43.78% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $7.78 per share and revenue of $10.48 billion. These results would represent year-over-year changes of +365.87% and +48.21%, respectively.
Investors might also notice recent changes to analyst estimates for MercadoLibre. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.24% higher. MercadoLibre currently has a Zacks Rank of #2 (Buy).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 121.96. For comparison, its industry has an average Forward P/E of 23.08, which means MercadoLibre is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 53, which puts it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.