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MercadoLibre (MELI) Gains But Lags Market: What You Should Know
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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,146.72, moving +0.49% from the previous trading session. This move lagged the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.61%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 5.83% over the past month, lagging the Retail-Wholesale sector's gain of 3.78% and the S&P 500's gain of 3.18% in that time.
MercadoLibre will be looking to display strength as it nears its next earnings release. On that day, MercadoLibre is projected to report earnings of $4.13 per share, which would represent year-over-year growth of 69.96%. Our most recent consensus estimate is calling for quarterly revenue of $3.26 billion, up 25.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.69 per share and revenue of $13.56 billion, which would represent changes of +75.13% and +28.73%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 68.36. This valuation marks a premium compared to its industry's average Forward P/E of 20.21.
It is also worth noting that MELI currently has a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 1.19 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MercadoLibre (MELI) Gains But Lags Market: What You Should Know
MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,146.72, moving +0.49% from the previous trading session. This move lagged the S&P 500's daily gain of 0.85%. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq added 5.61%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 5.83% over the past month, lagging the Retail-Wholesale sector's gain of 3.78% and the S&P 500's gain of 3.18% in that time.
MercadoLibre will be looking to display strength as it nears its next earnings release. On that day, MercadoLibre is projected to report earnings of $4.13 per share, which would represent year-over-year growth of 69.96%. Our most recent consensus estimate is calling for quarterly revenue of $3.26 billion, up 25.42% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.69 per share and revenue of $13.56 billion, which would represent changes of +75.13% and +28.73%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.09% higher. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 68.36. This valuation marks a premium compared to its industry's average Forward P/E of 20.21.
It is also worth noting that MELI currently has a PEG ratio of 1.56. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 1.19 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.