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Why the Market Dipped But MercadoLibre (MELI) Gained Today
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In the latest close session, MercadoLibre (MELI - Free Report) was up +1.68% at $1,674.08. The stock exceeded the S&P 500, which registered a loss of 0.57% for the day. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
The operator of an online marketplace and payments system in Latin America's stock has climbed by 3.81% in the past month, exceeding the Retail-Wholesale sector's loss of 3.04% and the S&P 500's gain of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. On that day, MercadoLibre is projected to report earnings of $8.69 per share, which would represent a year-over-year decline of 15.71%. At the same time, our most recent consensus estimate is projecting a revenue of $9.77 billion, reflecting a 43.9% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $40.97 per share and a revenue of $40.36 billion, indicating changes of +3.98% and +39.68%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, MercadoLibre holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, MercadoLibre is presently being traded at a Forward P/E ratio of 40.19. This represents a premium compared to its industry average Forward P/E of 16.73.
We can additionally observe that MELI currently boasts a PEG ratio of 1.01. 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 1.01 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 109, positioning it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Why the Market Dipped But MercadoLibre (MELI) Gained Today
In the latest close session, MercadoLibre (MELI - Free Report) was up +1.68% at $1,674.08. The stock exceeded the S&P 500, which registered a loss of 0.57% for the day. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
The operator of an online marketplace and payments system in Latin America's stock has climbed by 3.81% in the past month, exceeding the Retail-Wholesale sector's loss of 3.04% and the S&P 500's gain of 2.14%.
Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. On that day, MercadoLibre is projected to report earnings of $8.69 per share, which would represent a year-over-year decline of 15.71%. At the same time, our most recent consensus estimate is projecting a revenue of $9.77 billion, reflecting a 43.9% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $40.97 per share and a revenue of $40.36 billion, indicating changes of +3.98% and +39.68%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, MercadoLibre holds a Zacks Rank of #5 (Strong Sell).
In terms of valuation, MercadoLibre is presently being traded at a Forward P/E ratio of 40.19. This represents a premium compared to its industry average Forward P/E of 16.73.
We can additionally observe that MELI currently boasts a PEG ratio of 1.01. 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 1.01 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 109, positioning it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.