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Why MercadoLibre (MELI) Dipped More Than Broader Market Today
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MercadoLibre (MELI - Free Report) closed the latest trading day at $1,706.24, indicating a -1.56% change from the previous session's end. This change lagged the S&P 500's daily loss of 1.37%. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 1.8%.
Shares of the operator of an online marketplace and payments system in Latin America have appreciated by 4.5% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 6.07% and the S&P 500's gain of 5.1%.
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. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. As of now, MercadoLibre holds a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 49.12 right now. This signifies a premium in comparison to the average Forward P/E of 19.61 for its industry.
Investors should also note that MELI has a PEG ratio of 1.16 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry currently had an average PEG ratio of 0.59 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 94, which puts it in the top 38% 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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Why MercadoLibre (MELI) Dipped More Than Broader Market Today
MercadoLibre (MELI - Free Report) closed the latest trading day at $1,706.24, indicating a -1.56% change from the previous session's end. This change lagged the S&P 500's daily loss of 1.37%. Elsewhere, the Dow saw a downswing of 1.35%, while the tech-heavy Nasdaq depreciated by 1.8%.
Shares of the operator of an online marketplace and payments system in Latin America have appreciated by 4.5% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 6.07% and the S&P 500's gain of 5.1%.
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. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.42% higher within the past month. As of now, MercadoLibre holds a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 49.12 right now. This signifies a premium in comparison to the average Forward P/E of 19.61 for its industry.
Investors should also note that MELI has a PEG ratio of 1.16 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry currently had an average PEG ratio of 0.59 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 94, which puts it in the top 38% 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.