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MercadoLibre (MELI) Suffers a Larger Drop Than the General Market: Key Insights
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MercadoLibre (MELI - Free Report) closed at $2,099.90 in the latest trading session, marking a -2.2% move from the prior day. This move lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 1.43%.
The stock of operator of an online marketplace and payments system in Latin America has fallen by 0.07% in the past month, lagging the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. The company is predicted to post an EPS of $11.66, indicating a 7.53% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.49 billion, indicating a 40.2% upward movement from the same quarter last year.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $39.8 per share and revenue of $28.63 billion. These results would represent year-over-year changes of +5.6% and 0%, respectively.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MercadoLibre presently features a Zacks Rank of #4 (Sell).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 36.03. Its industry sports an average Forward P/E of 16.34, so one might conclude that MercadoLibre is trading at a premium comparatively.
Meanwhile, MELI's PEG ratio is currently 1.07. 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. MELI's industry had an average PEG ratio of 1.07 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 179, finds itself in the bottom 27% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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MercadoLibre (MELI) Suffers a Larger Drop Than the General Market: Key Insights
MercadoLibre (MELI - Free Report) closed at $2,099.90 in the latest trading session, marking a -2.2% move from the prior day. This move lagged the S&P 500's daily loss of 0.84%. Elsewhere, the Dow saw a downswing of 0.34%, while the tech-heavy Nasdaq depreciated by 1.43%.
The stock of operator of an online marketplace and payments system in Latin America has fallen by 0.07% in the past month, lagging the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. The company is predicted to post an EPS of $11.66, indicating a 7.53% decline compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $8.49 billion, indicating a 40.2% upward movement from the same quarter last year.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $39.8 per share and revenue of $28.63 billion. These results would represent year-over-year changes of +5.6% and 0%, respectively.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MercadoLibre presently features a Zacks Rank of #4 (Sell).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 36.03. Its industry sports an average Forward P/E of 16.34, so one might conclude that MercadoLibre is trading at a premium comparatively.
Meanwhile, MELI's PEG ratio is currently 1.07. 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. MELI's industry had an average PEG ratio of 1.07 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 179, finds itself in the bottom 27% echelons 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.