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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 $1,293.77, moving -1.11% from the previous trading session. This change lagged the S&P 500's 0.6% loss on the day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 2.87%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 10.25% in the past month. In that same time, the Retail-Wholesale sector gained 4.93%, while the S&P 500 gained 6.22%.
MercadoLibre will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.04, up 133.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.88 billion, up 28.01% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 3.87% higher. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 84.12. This valuation marks a premium compared to its industry's average Forward P/E of 21.87.
We can also see that MELI currently has a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $1,293.77, moving -1.11% from the previous trading session. This change lagged the S&P 500's 0.6% loss on the day. Meanwhile, the Dow lost 0.33%, and the Nasdaq, a tech-heavy index, lost 2.87%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 10.25% in the past month. In that same time, the Retail-Wholesale sector gained 4.93%, while the S&P 500 gained 6.22%.
MercadoLibre will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.04, up 133.85% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.88 billion, up 28.01% from the year-ago period.
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.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. 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 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 3.87% higher. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 84.12. This valuation marks a premium compared to its industry's average Forward P/E of 21.87.
We can also see that MELI currently has a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.16 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 35% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.