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MercadoLibre (MELI) Falls More Steeply Than Broader Market: What Investors Need to Know
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MercadoLibre (MELI - Free Report) closed the latest trading day at $1,356.43, indicating a -1.01% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.88% for the day. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw a decrease of 2.05%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 11.92% in the past month. In that same time, the Retail-Wholesale sector lost 2.7%, while the S&P 500 lost 2.57%.
Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $6.95, reflecting a 75.06% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, up 30.58% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $35.77 per share and a revenue of $17.78 billion, indicating changes of +83.81% and +22.86%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 witnessed a 0.82% decrease. As of now, MercadoLibre holds a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is presently being traded at a Forward P/E ratio of 38.31. This denotes a premium relative to the industry's average Forward P/E of 20.45.
Investors should also note that MELI has a PEG ratio of 0.88 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 0.69 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 43, which puts it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MercadoLibre (MELI) Falls More Steeply Than Broader Market: What Investors Need to Know
MercadoLibre (MELI - Free Report) closed the latest trading day at $1,356.43, indicating a -1.01% change from the previous session's end. The stock fell short of the S&P 500, which registered a loss of 0.88% for the day. Meanwhile, the Dow experienced a rise of 0.56%, and the technology-dominated Nasdaq saw a decrease of 2.05%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 11.92% in the past month. In that same time, the Retail-Wholesale sector lost 2.7%, while the S&P 500 lost 2.57%.
Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $6.95, reflecting a 75.06% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $3.97 billion, up 30.58% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $35.77 per share and a revenue of $17.78 billion, indicating changes of +83.81% and +22.86%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 witnessed a 0.82% decrease. As of now, MercadoLibre holds a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is presently being traded at a Forward P/E ratio of 38.31. This denotes a premium relative to the industry's average Forward P/E of 20.45.
Investors should also note that MELI has a PEG ratio of 0.88 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 0.69 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 43, which puts it in the top 18% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.