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MercadoLibre (MELI) Gains But Lags Market: What You Should Know
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MercadoLibre (MELI - Free Report) closed at $1,183.89 in the latest trading session, marking a +1.06% move from the prior day. This change lagged the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 6.88% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.7% and the S&P 500's gain of 4.67% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. In that report, analysts expect MercadoLibre to post earnings of $4.13 per share. This would mark year-over-year growth of 69.96%. Our most recent consensus estimate is calling for quarterly revenue of $3.26 billion, up 25.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.68 per share and revenue of $13.56 billion, which would represent changes of +75.03% and +28.73%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. MercadoLibre is currently a Zacks Rank #2 (Buy).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 70.24. This represents a premium compared to its industry's average Forward P/E of 19.4.
Investors should also note that MELI has a PEG ratio of 1.49 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 0.97 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 83, which puts it in the top 33% 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.
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) Gains But Lags Market: What You Should Know
MercadoLibre (MELI - Free Report) closed at $1,183.89 in the latest trading session, marking a +1.06% move from the prior day. This change lagged the S&P 500's 1.23% gain on the day. Meanwhile, the Dow gained 0.84%, and the Nasdaq, a tech-heavy index, lost 2.24%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 6.88% over the past month. This has lagged the Retail-Wholesale sector's gain of 4.7% and the S&P 500's gain of 4.67% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. In that report, analysts expect MercadoLibre to post earnings of $4.13 per share. This would mark year-over-year growth of 69.96%. Our most recent consensus estimate is calling for quarterly revenue of $3.26 billion, up 25.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.68 per share and revenue of $13.56 billion, which would represent changes of +75.03% and +28.73%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. MercadoLibre is currently a Zacks Rank #2 (Buy).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 70.24. This represents a premium compared to its industry's average Forward P/E of 19.4.
Investors should also note that MELI has a PEG ratio of 1.49 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 0.97 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 83, which puts it in the top 33% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.