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MercadoLibre (MELI) Dips More Than Broader Markets: What You Should Know
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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,162.33, moving -0.49% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 5.71% over the past month, outpacing the Retail-Wholesale sector's loss of 6.73% and the S&P 500's loss of 5.39% in that time.
MercadoLibre will be looking to display strength as it nears its next earnings release. On that day, MercadoLibre is projected to report earnings of $3.30 per share, which would represent year-over-year growth of 153.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.87 billion, up 27.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.78 per share and revenue of $12.93 billion, which would represent changes of +65.58% and +22.66%, respectively, from the prior year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 4.73% higher. MercadoLibre currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 74.03. This valuation marks a premium compared to its industry's average Forward P/E of 18.28.
Also, we should mention that MELI has a PEG ratio of 1.73. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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) Dips More Than Broader Markets: What You Should Know
MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,162.33, moving -0.49% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 5.71% over the past month, outpacing the Retail-Wholesale sector's loss of 6.73% and the S&P 500's loss of 5.39% in that time.
MercadoLibre will be looking to display strength as it nears its next earnings release. On that day, MercadoLibre is projected to report earnings of $3.30 per share, which would represent year-over-year growth of 153.85%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.87 billion, up 27.78% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $15.78 per share and revenue of $12.93 billion, which would represent changes of +65.58% and +22.66%, respectively, from the prior year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 4.73% higher. MercadoLibre currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 74.03. This valuation marks a premium compared to its industry's average Forward P/E of 18.28.
Also, we should mention that MELI has a PEG ratio of 1.73. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 74, putting it in the top 30% 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.