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MercadoLibre (MELI) Advances While Market Declines: Some Information for Investors
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MercadoLibre (MELI - Free Report) closed at $1,906.24 in the latest trading session, marking a +1.59% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.59% for the day. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
The operator of an online marketplace and payments system in Latin America's stock has climbed by 2.63% in the past month, exceeding the Retail-Wholesale sector's loss of 8.48% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. On that day, MercadoLibre is projected to report earnings of $9.42 per share, which would represent year-over-year growth of 13.22%. Simultaneously, our latest consensus estimate expects the revenue to be $10.64 billion, showing a 43.61% escalation compared to the year-ago quarter.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $39.11 per share and revenue of $41.78 billion. These results would represent year-over-year changes of -0.74% and +44.59%, respectively.
It is also important to note the recent changes to analyst estimates for MercadoLibre. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 47.97. This valuation marks a premium compared to its industry average Forward P/E of 16.19.
We can also see that MELI currently has a PEG ratio of 1.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MELI's industry had an average PEG ratio of 1.18 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 42% of all industries, numbering over 250.
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.
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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MercadoLibre (MELI) Advances While Market Declines: Some Information for Investors
MercadoLibre (MELI - Free Report) closed at $1,906.24 in the latest trading session, marking a +1.59% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 0.59% for the day. Elsewhere, the Dow lost 0.6%, while the tech-heavy Nasdaq lost 0.65%.
The operator of an online marketplace and payments system in Latin America's stock has climbed by 2.63% in the past month, exceeding the Retail-Wholesale sector's loss of 8.48% and the S&P 500's loss of 1.37%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. On that day, MercadoLibre is projected to report earnings of $9.42 per share, which would represent year-over-year growth of 13.22%. Simultaneously, our latest consensus estimate expects the revenue to be $10.64 billion, showing a 43.61% escalation compared to the year-ago quarter.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $39.11 per share and revenue of $41.78 billion. These results would represent year-over-year changes of -0.74% and +44.59%, respectively.
It is also important to note the recent changes to analyst estimates for MercadoLibre. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 47.97. This valuation marks a premium compared to its industry average Forward P/E of 16.19.
We can also see that MELI currently has a PEG ratio of 1.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. MELI's industry had an average PEG ratio of 1.18 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 101, this industry ranks in the top 42% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.