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MercadoLibre (MELI) Laps the Stock Market: Here's Why
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MercadoLibre (MELI - Free Report) closed the latest trading day at $1,762.70, indicating a +0.16% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.36%.
Shares of the operator of an online marketplace and payments system in Latin America witnessed a gain of 11.62% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.71% and the S&P 500's gain of 2.4%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company is expected to report EPS of $6.66, up 104.92% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.13 billion, showing a 37.64% escalation compared to the year-ago quarter.
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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 has moved 1.09% higher within the past month. MercadoLibre is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 50.08. This indicates a premium in contrast to its industry's Forward P/E of 19.59.
We can additionally observe that MELI currently boasts a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.56.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 114, positioning it in the top 46% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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MercadoLibre (MELI) Laps the Stock Market: Here's Why
MercadoLibre (MELI - Free Report) closed the latest trading day at $1,762.70, indicating a +0.16% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.26%, while the tech-heavy Nasdaq added 0.36%.
Shares of the operator of an online marketplace and payments system in Latin America witnessed a gain of 11.62% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.71% and the S&P 500's gain of 2.4%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company is expected to report EPS of $6.66, up 104.92% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $4.13 billion, showing a 37.64% escalation compared to the year-ago quarter.
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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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 has moved 1.09% higher within the past month. MercadoLibre is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 50.08. This indicates a premium in contrast to its industry's Forward P/E of 19.59.
We can additionally observe that MELI currently boasts a PEG ratio of 1.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.56.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 114, positioning it in the top 46% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.