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.
Why MercadoLibre (MELI) Dipped More Than Broader Market Today
Read MoreHide Full Article
MercadoLibre (MELI - Free Report) ended the recent trading session at $1,415.88, demonstrating a -1.96% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.2%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 1.79%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 3.69% in the past month, falling short of the Retail-Wholesale sector's loss of 0.91% and the S&P 500's loss of 0.85%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $6.98, reflecting a 75.82% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.97 billion, reflecting a 30.58% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.89 per share and revenue of $17.78 billion. These totals would mark changes of +84.43% and +22.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 past month, there's been a 0.49% fall in the Zacks Consensus EPS estimate. As of now, MercadoLibre holds a Zacks Rank of #3 (Hold).
With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 40.24. This expresses a premium compared to the average Forward P/E of 20.18 of its industry.
Investors should also note that MELI has a PEG ratio of 0.93 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 17% of all industries, numbering over 250.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why MercadoLibre (MELI) Dipped More Than Broader Market Today
MercadoLibre (MELI - Free Report) ended the recent trading session at $1,415.88, demonstrating a -1.96% swing from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.2%. Meanwhile, the Dow lost 0.65%, and the Nasdaq, a tech-heavy index, lost 1.79%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 3.69% in the past month, falling short of the Retail-Wholesale sector's loss of 0.91% and the S&P 500's loss of 0.85%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $6.98, reflecting a 75.82% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $3.97 billion, reflecting a 30.58% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $35.89 per share and revenue of $17.78 billion. These totals would mark changes of +84.43% and +22.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 past month, there's been a 0.49% fall in the Zacks Consensus EPS estimate. As of now, MercadoLibre holds a Zacks Rank of #3 (Hold).
With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 40.24. This expresses a premium compared to the average Forward P/E of 20.18 of its industry.
Investors should also note that MELI has a PEG ratio of 0.93 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce was holding an average PEG ratio of 0.67 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 17% of all industries, numbering over 250.
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.