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MercadoLibre (MELI) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest close session, MercadoLibre (MELI - Free Report) was down 1.36% at $1,767.55. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.04%.
Shares of the operator of an online marketplace and payments system in Latin America have appreciated by 3.64% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 12.89%, and the S&P 500's gain of 12.24%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 41.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $50.05 per share and revenue of $38.81 billion, which would represent changes of +27.03% and +34.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 6.32% lower. Currently, MercadoLibre is carrying a Zacks Rank of #5 (Strong Sell).
Looking at valuation, MercadoLibre is presently trading at a Forward P/E ratio of 35.8. This denotes a premium relative to the industry average Forward P/E of 16.73.
We can also see that MELI currently has a PEG ratio of 0.87. 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 of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.88.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning 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) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest close session, MercadoLibre (MELI - Free Report) was down 1.36% at $1,767.55. This move lagged the S&P 500's daily loss of 0.04%. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.04%.
Shares of the operator of an online marketplace and payments system in Latin America have appreciated by 3.64% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 12.89%, and the S&P 500's gain of 12.24%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $8.41 billion, up 41.76% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $50.05 per share and revenue of $38.81 billion, which would represent changes of +27.03% and +34.32%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 moved 6.32% lower. Currently, MercadoLibre is carrying a Zacks Rank of #5 (Strong Sell).
Looking at valuation, MercadoLibre is presently trading at a Forward P/E ratio of 35.8. This denotes a premium relative to the industry average Forward P/E of 16.73.
We can also see that MELI currently has a PEG ratio of 0.87. 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 of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.88.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning 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.