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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 $1,383.43, moving -1% from the previous trading session. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had gained 12.03% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.13% and the S&P 500's gain of 0.19% in that time.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. The company is expected to report EPS of $5.88, up 129.69% from the prior-year quarter. 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.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 6.66% higher within the past month. MercadoLibre is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 67.97. This represents a premium compared to its industry's average Forward P/E of 21.02.
It is also worth noting that MELI currently has a PEG ratio of 1.45. 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 industry currently had an average PEG ratio of 0.77 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 70, which puts it in the top 28% 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 $1,383.43, moving -1% from the previous trading session. This change lagged the S&P 500's 0.84% gain on the day. Elsewhere, the Dow gained 0.96%, while the tech-heavy Nasdaq added 0.81%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had gained 12.03% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.13% and the S&P 500's gain of 0.19% in that time.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. The company is expected to report EPS of $5.88, up 129.69% from the prior-year quarter. 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.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 6.66% higher within the past month. MercadoLibre is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 67.97. This represents a premium compared to its industry's average Forward P/E of 21.02.
It is also worth noting that MELI currently has a PEG ratio of 1.45. 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 industry currently had an average PEG ratio of 0.77 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 70, which puts it in the top 28% 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.