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MercadoLibre (MELI) Stock Moves -1.94%: What You Should Know
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MercadoLibre (MELI - Free Report) ended the recent trading session at $2,034.82, demonstrating a -1.94% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 2.06%. At the same time, the Dow lost 1.76%, and the tech-heavy Nasdaq lost 2.39%.
The operator of an online marketplace and payments system in Latin America's shares have seen an increase of 4.08% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.12% and outstripping the S&P 500's gain of 1.63%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company's earnings per share (EPS) are projected to be $11.66, reflecting a 7.53% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.49 billion, up 40.2% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $39.8 per share and revenue of $28.63 billion. These totals would mark changes of +5.6% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. As of now, MercadoLibre holds a Zacks Rank of #4 (Sell).
From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 34.82. This valuation marks a premium compared to its industry average Forward P/E of 16.94.
Investors should also note that MELI has a PEG ratio of 1.03 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.09.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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MercadoLibre (MELI) Stock Moves -1.94%: What You Should Know
MercadoLibre (MELI - Free Report) ended the recent trading session at $2,034.82, demonstrating a -1.94% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 2.06%. At the same time, the Dow lost 1.76%, and the tech-heavy Nasdaq lost 2.39%.
The operator of an online marketplace and payments system in Latin America's shares have seen an increase of 4.08% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.12% and outstripping the S&P 500's gain of 1.63%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company's earnings per share (EPS) are projected to be $11.66, reflecting a 7.53% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $8.49 billion, up 40.2% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $39.8 per share and revenue of $28.63 billion. These totals would mark changes of +5.6% and 0%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. As of now, MercadoLibre holds a Zacks Rank of #4 (Sell).
From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 34.82. This valuation marks a premium compared to its industry average Forward P/E of 16.94.
Investors should also note that MELI has a PEG ratio of 1.03 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.09.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 185, positioning it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.