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MercadoLibre (MELI) Ascends While Market Falls: Some Facts to Note
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MercadoLibre (MELI - Free Report) ended the recent trading session at $1,550.62, demonstrating a +0.33% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.19% for the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.54%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 9.42% in the past month. In that same time, the Retail-Wholesale sector gained 2.94%, while the S&P 500 gained 3.18%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. It is anticipated that the company will report an EPS of $7.01, marking a 76.57% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.94 billion, up 29.85% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $34.85 per share and revenue of $17.81 billion, indicating changes of +79.09% and +23.06%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.25% lower. At present, MercadoLibre boasts a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 44.35. Its industry sports an average Forward P/E of 20.78, so one might conclude that MercadoLibre is trading at a premium comparatively.
Investors should also note that MELI has a PEG ratio of 1.05 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.53.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 74, which puts 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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MercadoLibre (MELI) Ascends While Market Falls: Some Facts to Note
MercadoLibre (MELI - Free Report) ended the recent trading session at $1,550.62, demonstrating a +0.33% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.19% for the day. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 0.54%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 9.42% in the past month. In that same time, the Retail-Wholesale sector gained 2.94%, while the S&P 500 gained 3.18%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. It is anticipated that the company will report an EPS of $7.01, marking a 76.57% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.94 billion, up 29.85% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $34.85 per share and revenue of $17.81 billion, indicating changes of +79.09% and +23.06%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.25% lower. At present, MercadoLibre boasts a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 44.35. Its industry sports an average Forward P/E of 20.78, so one might conclude that MercadoLibre is trading at a premium comparatively.
Investors should also note that MELI has a PEG ratio of 1.05 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.53.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 74, which puts 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.