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MercadoLibre (MELI) Gains As Market Dips: What You Should Know
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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,210.90, moving +1.1% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 7.85% over the past month, lagging the Retail-Wholesale sector's gain of 3.31% and the S&P 500's gain of 4.86% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. On that day, MercadoLibre is projected to report earnings of $4.13 per share, which would represent year-over-year growth of 69.96%. Our most recent consensus estimate is calling for quarterly revenue of $3.22 billion, up 24.04% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $16.68 per share and revenue of $13.44 billion. These results would represent year-over-year changes of +75.03% and +27.58%, respectively.
It is also important to note the 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MercadoLibre is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 71.82 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.26.
It is also worth noting that MELI currently has a PEG ratio of 1.52. 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. The Internet - Commerce industry currently had an average PEG ratio of 0.98 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.
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MercadoLibre (MELI) Gains As Market Dips: What You Should Know
MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,210.90, moving +1.1% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.53%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 7.85% over the past month, lagging the Retail-Wholesale sector's gain of 3.31% and the S&P 500's gain of 4.86% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. On that day, MercadoLibre is projected to report earnings of $4.13 per share, which would represent year-over-year growth of 69.96%. Our most recent consensus estimate is calling for quarterly revenue of $3.22 billion, up 24.04% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $16.68 per share and revenue of $13.44 billion. These results would represent year-over-year changes of +75.03% and +27.58%, respectively.
It is also important to note the 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MercadoLibre is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 71.82 right now. This valuation marks a premium compared to its industry's average Forward P/E of 19.26.
It is also worth noting that MELI currently has a PEG ratio of 1.52. 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. The Internet - Commerce industry currently had an average PEG ratio of 0.98 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 34% 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.