Yahoo Finance MercadoLibre (MELI) Gains But Lags Market: What You Should Know
MercadoLibre (MELI) closed the most recent trading day at $1,209.74, moving +0.12% from the previous trading session. This change lagged the S&P 500's 0.62% gain on the day. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, lost 5.66%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 6.26% in the past month. In that same time, the Retail-Wholesale sector gained 3.32%, while the S&P 500 gained 3.44%.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. The company is expected to report EPS of $4.13, up 69.96% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.22 billion, up 24.04% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $16.68 per share and revenue of $13.44 billion. These totals would mark changes of +75.03% and +27.58%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.07% higher. MercadoLibre currently has a Zacks Rank of #1 (Strong Buy).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 72.45. This represents a premium compared to its industry's average Forward P/E of 19.27.
Also, we should mention that MELI has a PEG ratio of 1.53. 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. MELI's industry had an average PEG ratio of 0.97 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 69, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
