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MercadoLibre (MELI) Beats Stock Market Upswing: What Investors Need to Know
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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,742.30, moving +1.87% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 0.1%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 3.34% in the past month. In that same time, the Retail-Wholesale sector lost 2.61%, while the S&P 500 lost 1.74%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company is forecasted to report an EPS of $9.73, showcasing a 0.1% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $8.41 billion, indicating a 41.76% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $51.5 per share and revenue of $38.81 billion, indicating changes of +30.71% and +34.32%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 13.02% fall in the Zacks Consensus EPS estimate. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, MercadoLibre is at present trading with a Forward P/E ratio of 33.21. This denotes a premium relative to the industry average Forward P/E of 16.38.
Investors should also note that MELI has a PEG ratio of 0.89 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 0.89 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 28% 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.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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MercadoLibre (MELI) Beats Stock Market Upswing: What Investors Need to Know
MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,742.30, moving +1.87% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. Elsewhere, the Dow lost 0.18%, while the tech-heavy Nasdaq added 0.1%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 3.34% in the past month. In that same time, the Retail-Wholesale sector lost 2.61%, while the S&P 500 lost 1.74%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company is forecasted to report an EPS of $9.73, showcasing a 0.1% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $8.41 billion, indicating a 41.76% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $51.5 per share and revenue of $38.81 billion, indicating changes of +30.71% and +34.32%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 13.02% fall in the Zacks Consensus EPS estimate. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, MercadoLibre is at present trading with a Forward P/E ratio of 33.21. This denotes a premium relative to the industry average Forward P/E of 16.38.
Investors should also note that MELI has a PEG ratio of 0.89 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 0.89 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 177, putting it in the bottom 28% 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.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.