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MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,428.19, moving -0.57% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 3.55% over the past month, outpacing the Retail-Wholesale sector's loss of 2.45% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. On that day, MercadoLibre is projected to report earnings of $5.88 per share, which would represent year-over-year growth of 129.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.57 billion, up 32.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.56 per share and revenue of $13.95 billion, which would represent changes of +115.74% and +32.34%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 6.66% 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 69.86. For comparison, its industry has an average Forward P/E of 20.26, which means MercadoLibre is trading at a premium to the group.
Investors should also note that MELI has a PEG ratio of 1.49 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,428.19, moving -0.57% from the previous trading session. This move lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 3.55% over the past month, outpacing the Retail-Wholesale sector's loss of 2.45% and the S&P 500's loss of 1.27% in that time.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. On that day, MercadoLibre is projected to report earnings of $5.88 per share, which would represent year-over-year growth of 129.69%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.57 billion, up 32.86% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $20.56 per share and revenue of $13.95 billion, which would represent changes of +115.74% and +32.34%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 6.66% 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 69.86. For comparison, its industry has an average Forward P/E of 20.26, which means MercadoLibre is trading at a premium to the group.
Investors should also note that MELI has a PEG ratio of 1.49 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.