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MercadoLibre (MELI) Declines More Than Market: Some Information for Investors
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MercadoLibre (MELI - Free Report) ended the recent trading session at $1,590.84, demonstrating a -2.71% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
Shares of the operator of an online marketplace and payments system in Latin America have depreciated by 1.76% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 4.65%, and lagging the S&P 500's gain of 2.02%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. The company is predicted to post an EPS of $8.69, indicating a 15.71% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.77 billion, indicating a 43.9% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $40.97 per share and revenue of $40.36 billion, which would represent changes of +3.98% and +39.68%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MercadoLibre is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 39.91. This indicates a premium in contrast to its industry's Forward P/E of 16.45.
It's also important to note that MELI currently trades at a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.01.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 105, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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MercadoLibre (MELI) Declines More Than Market: Some Information for Investors
MercadoLibre (MELI - Free Report) ended the recent trading session at $1,590.84, demonstrating a -2.71% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
Shares of the operator of an online marketplace and payments system in Latin America have depreciated by 1.76% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 4.65%, and lagging the S&P 500's gain of 2.02%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. The company is predicted to post an EPS of $8.69, indicating a 15.71% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $9.77 billion, indicating a 43.9% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $40.97 per share and revenue of $40.36 billion, which would represent changes of +3.98% and +39.68%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. MercadoLibre is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 39.91. This indicates a premium in contrast to its industry's Forward P/E of 16.45.
It's also important to note that MELI currently trades at a PEG ratio of 1.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.01.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 105, this industry ranks in the top 44% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.