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MercadoLibre (MELI) Gains But Lags Market: What You Should Know
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In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,162.09, marking a +0.57% move from the previous day. The stock lagged the S&P 500's daily gain of 1.15%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 7.23%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 9.88% over the past month, lagging the Retail-Wholesale sector's gain of 4.03% and the S&P 500's gain of 3.08% 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 $4.13 per share. This would mark year-over-year growth of 69.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.26 billion, up 25.42% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $16.68 per share and revenue of $13.56 billion. These results would represent year-over-year changes of +75.03% and +28.73%, respectively.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MercadoLibre currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 69.29. For comparison, its industry has an average Forward P/E of 19.11, which means MercadoLibre is trading at a premium to the group.
Also, we should mention that MELI has a PEG ratio of 1.47. 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. MELI's industry had an average PEG ratio of 0.96 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 85, 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 But Lags Market: What You Should Know
In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,162.09, marking a +0.57% move from the previous day. The stock lagged the S&P 500's daily gain of 1.15%. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 7.23%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 9.88% over the past month, lagging the Retail-Wholesale sector's gain of 4.03% and the S&P 500's gain of 3.08% 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 $4.13 per share. This would mark year-over-year growth of 69.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.26 billion, up 25.42% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $16.68 per share and revenue of $13.56 billion. These results would represent year-over-year changes of +75.03% and +28.73%, respectively.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MercadoLibre currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 69.29. For comparison, its industry has an average Forward P/E of 19.11, which means MercadoLibre is trading at a premium to the group.
Also, we should mention that MELI has a PEG ratio of 1.47. 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. MELI's industry had an average PEG ratio of 0.96 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 85, 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.