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MercadoLibre (MELI) Outperforms Broader Market: What You Need to Know
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MercadoLibre (MELI - Free Report) closed at $1,889.29 in the latest trading session, marking a +1.76% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.6%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.64%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 2.6% in the past month, falling short of the Retail-Wholesale sector's loss of 1.58% and the S&P 500's gain of 1.34%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. It is anticipated that the company will report an EPS of $9.42, marking a 13.22% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.64 billion, up 43.61% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $38.29 per share and a revenue of $41.82 billion, representing changes of -2.82% and +44.73%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, there's been a 2.11% fall in the Zacks Consensus EPS estimate. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 48.49. This valuation marks a premium compared to its industry average Forward P/E of 15.25.
It is also worth noting that MELI currently has a PEG ratio of 1.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 180, positioning it in the bottom 27% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
View the Zacks #1 Rank List
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MercadoLibre (MELI) Outperforms Broader Market: What You Need to Know
MercadoLibre (MELI - Free Report) closed at $1,889.29 in the latest trading session, marking a +1.76% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.6%. At the same time, the Dow added 0.83%, and the tech-heavy Nasdaq gained 0.64%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 2.6% in the past month, falling short of the Retail-Wholesale sector's loss of 1.58% and the S&P 500's gain of 1.34%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. It is anticipated that the company will report an EPS of $9.42, marking a 13.22% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $10.64 billion, up 43.61% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $38.29 per share and a revenue of $41.82 billion, representing changes of -2.82% and +44.73%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 past month, there's been a 2.11% fall in the Zacks Consensus EPS estimate. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 48.49. This valuation marks a premium compared to its industry average Forward P/E of 15.25.
It is also worth noting that MELI currently has a PEG ratio of 1.3. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.21 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 180, positioning it in the bottom 27% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.