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MercadoLibre (MELI) Declines More Than Market: Some Information for Investors
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MercadoLibre (MELI - Free Report) closed at $1,835.36 in the latest trading session, marking a -1.16% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 1.74% in the past month. In that same time, the Retail-Wholesale sector gained 3.71%, while the S&P 500 gained 2.44%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. 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. At the same time, our most recent consensus estimate is projecting a revenue of $10.64 billion, reflecting a 43.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $38.13 per share and a revenue of $41.73 billion, demonstrating changes of -3.22% and +44.45%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 2.51% downward. MercadoLibre presently features a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 48.7. This indicates a premium in contrast to its industry's Forward P/E of 15.65.
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. The Internet - Commerce industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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MercadoLibre (MELI) Declines More Than Market: Some Information for Investors
MercadoLibre (MELI - Free Report) closed at $1,835.36 in the latest trading session, marking a -1.16% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 0.34%, and the tech-heavy Nasdaq lost 2.15%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 1.74% in the past month. In that same time, the Retail-Wholesale sector gained 3.71%, while the S&P 500 gained 2.44%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. 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. At the same time, our most recent consensus estimate is projecting a revenue of $10.64 billion, reflecting a 43.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $38.13 per share and a revenue of $41.73 billion, demonstrating changes of -3.22% and +44.45%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 2.51% downward. MercadoLibre presently features a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 48.7. This indicates a premium in contrast to its industry's Forward P/E of 15.65.
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. The Internet - Commerce industry currently had an average PEG ratio of 1.25 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 174, positioning it in the bottom 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.