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MercadoLibre (MELI) Outperforms Broader Market: What You Need to Know
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MercadoLibre (MELI - Free Report) closed the latest trading day at $1,538.83, indicating a +1.28% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.1%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 4.5% in the past month, falling short of the Retail-Wholesale sector's gain of 2.45% and the S&P 500's gain of 2.75%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. The company is expected to report EPS of $7.16, up 120.31% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.13 billion, indicating a 37.74% increase compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 43.71. This expresses a premium compared to the average Forward P/E of 19.95 of its industry.
It's also important to note that MELI currently trades at a PEG ratio of 0.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MELI's industry had an average PEG ratio of 0.56 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Outperforms Broader Market: What You Need to Know
MercadoLibre (MELI - Free Report) closed the latest trading day at $1,538.83, indicating a +1.28% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq appreciated by 0.1%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 4.5% in the past month, falling short of the Retail-Wholesale sector's gain of 2.45% and the S&P 500's gain of 2.75%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. The company is expected to report EPS of $7.16, up 120.31% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $4.13 billion, indicating a 37.74% increase compared to the same quarter of the previous year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 43.71. This expresses a premium compared to the average Forward P/E of 19.95 of its industry.
It's also important to note that MELI currently trades at a PEG ratio of 0.78. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MELI's industry had an average PEG ratio of 0.56 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.