We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MercadoLibre (MELI) Stock Falls Amid Market Uptick: What Investors Need to Know
Read MoreHide Full Article
The latest trading session saw MercadoLibre (MELI - Free Report) ending at $1,522.65, denoting a -0.96% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.86% for the day. Elsewhere, the Dow saw an upswing of 1.22%, while the tech-heavy Nasdaq appreciated by 0.51%.
The the stock of operator of an online marketplace and payments system in Latin America has fallen by 4.35% in the past month, lagging the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 2.84%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company is expected to report EPS of $7.44, up 87.41% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.98 billion, reflecting a 31.17% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $36.06 per share and a revenue of $17.87 billion, demonstrating changes of +85.3% and +23.49%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.35% increase. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 42.63. This valuation marks a premium compared to its industry's average Forward P/E of 19.99.
It's also important to note that MELI currently trades at a PEG ratio of 1.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.66.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 27% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MercadoLibre (MELI) Stock Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw MercadoLibre (MELI - Free Report) ending at $1,522.65, denoting a -0.96% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.86% for the day. Elsewhere, the Dow saw an upswing of 1.22%, while the tech-heavy Nasdaq appreciated by 0.51%.
The the stock of operator of an online marketplace and payments system in Latin America has fallen by 4.35% in the past month, lagging the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 2.84%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company is expected to report EPS of $7.44, up 87.41% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $3.98 billion, reflecting a 31.17% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $36.06 per share and a revenue of $17.87 billion, demonstrating changes of +85.3% and +23.49%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.35% increase. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 42.63. This valuation marks a premium compared to its industry's average Forward P/E of 19.99.
It's also important to note that MELI currently trades at a PEG ratio of 1.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.66.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 67, this industry ranks in the top 27% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.