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MercadoLibre (MELI) Stock Drops Despite Market Gains: Important Facts to Note
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MercadoLibre (MELI - Free Report) closed at $2,351.14 in the latest trading session, marking a -2.25% move from the prior day. This move lagged the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.74%.
The stock of operator of an online marketplace and payments system in Latin America has risen by 0.1% in the past month, lagging the Retail-Wholesale sector's gain of 2.05% and the S&P 500's gain of 4.2%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. In that report, analysts expect MercadoLibre to post earnings of $12.01 per share. This would mark year-over-year growth of 14.6%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, up 28.57% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $47.75 per share and revenue of $27.35 billion, which would represent changes of +26.69% and +31.66%, respectively, from the prior year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
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 remained unchanged. MercadoLibre presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 50.37. This signifies a premium in comparison to the average Forward P/E of 22.08 for its industry.
It's also important to note that MELI currently trades at a PEG ratio of 1.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MELI's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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MercadoLibre (MELI) Stock Drops Despite Market Gains: Important Facts to Note
MercadoLibre (MELI - Free Report) closed at $2,351.14 in the latest trading session, marking a -2.25% move from the prior day. This move lagged the S&P 500's daily gain of 0.54%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.74%.
The stock of operator of an online marketplace and payments system in Latin America has risen by 0.1% in the past month, lagging the Retail-Wholesale sector's gain of 2.05% and the S&P 500's gain of 4.2%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. In that report, analysts expect MercadoLibre to post earnings of $12.01 per share. This would mark year-over-year growth of 14.6%. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, up 28.57% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $47.75 per share and revenue of $27.35 billion, which would represent changes of +26.69% and +31.66%, respectively, from the prior year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
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 remained unchanged. MercadoLibre presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 50.37. This signifies a premium in comparison to the average Forward P/E of 22.08 for its industry.
It's also important to note that MELI currently trades at a PEG ratio of 1.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. MELI's industry had an average PEG ratio of 1.61 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.