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MercadoLibre (MELI) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,754.13, marking a -2.51% move from the previous day. This change lagged the S&P 500's 0.03% loss on the day. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The operator of an online marketplace and payments system in Latin America's shares have seen a decrease of 7.75% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.06% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company is expected to report EPS of $9.42, up 13.22% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $10.64 billion, showing a 43.61% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $39.11 per share and a revenue of $41.78 billion, signifying shifts of -0.74% and +44.59%, respectively, from the last 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, MercadoLibre holds a Zacks Rank of #4 (Sell).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 46. This valuation marks a premium compared to its industry average Forward P/E of 15.58.
Also, we should mention that MELI has a PEG ratio of 1.23. 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 the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.17.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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MercadoLibre (MELI) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,754.13, marking a -2.51% move from the previous day. This change lagged the S&P 500's 0.03% loss on the day. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The operator of an online marketplace and payments system in Latin America's shares have seen a decrease of 7.75% over the last month, not keeping up with the Retail-Wholesale sector's loss of 5.06% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company is expected to report EPS of $9.42, up 13.22% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $10.64 billion, showing a 43.61% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $39.11 per share and a revenue of $41.78 billion, signifying shifts of -0.74% and +44.59%, respectively, from the last 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, MercadoLibre holds a Zacks Rank of #4 (Sell).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 46. This valuation marks a premium compared to its industry average Forward P/E of 15.58.
Also, we should mention that MELI has a PEG ratio of 1.23. 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 the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.17.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.