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MercadoLibre (MELI) Gains As Market Dips: What You Should Know
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MercadoLibre (MELI - Free Report) closed at $1,153.82 in the latest trading session, marking a +0.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 1.24%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 4.64% in the past month. In that same time, the Retail-Wholesale sector gained 1.58%, while the S&P 500 gained 3.1%.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. The company is expected to report EPS of $4.13, up 69.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.26 billion, up 25.42% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.68 per share and revenue of $13.56 billion. These totals would mark changes of +75.03% and +28.73%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 currently has a Zacks Rank of #2 (Buy).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 69.17. Its industry sports an average Forward P/E of 19.53, so we one might conclude that MercadoLibre is trading at a premium comparatively.
We can also see that MELI currently has a PEG ratio of 1.46. 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 1.12 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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) Gains As Market Dips: What You Should Know
MercadoLibre (MELI - Free Report) closed at $1,153.82 in the latest trading session, marking a +0.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.29%. At the same time, the Dow lost 0.55%, and the tech-heavy Nasdaq gained 1.24%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 4.64% in the past month. In that same time, the Retail-Wholesale sector gained 1.58%, while the S&P 500 gained 3.1%.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. The company is expected to report EPS of $4.13, up 69.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.26 billion, up 25.42% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.68 per share and revenue of $13.56 billion. These totals would mark changes of +75.03% and +28.73%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 currently has a Zacks Rank of #2 (Buy).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 69.17. Its industry sports an average Forward P/E of 19.53, so we one might conclude that MercadoLibre is trading at a premium comparatively.
We can also see that MELI currently has a PEG ratio of 1.46. 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 1.12 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% 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.