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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,231.56, moving +0.27% from the previous trading session. This change lagged the S&P 500's 0.81% gain on the day. On the other hand, the Dow registered a gain of 0.39%, and the technology-centric Nasdaq increased by 1.35%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 14.41% over the past month. This has lagged the Retail-Wholesale sector's loss of 7.92% and the S&P 500's loss of 6.19% in that time.
The upcoming earnings release of MercadoLibre will be of great interest to investors. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $20.56 per share and revenue of $13.95 billion. These totals would mark changes of +115.74% and +32.34%, respectively, from last year.
Investors should also note any 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MercadoLibre presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, MercadoLibre is presently trading at a Forward P/E ratio of 59.74. Its industry sports an average Forward P/E of 19.57, so one might conclude that MercadoLibre is trading at a premium comparatively.
It is also worth noting that MELI currently has a PEG ratio of 1.28. 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. MELI's industry had an average PEG ratio of 0.73 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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MercadoLibre (MELI) Rises Yet Lags Behind Market: Some Facts Worth Knowing
MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,231.56, moving +0.27% from the previous trading session. This change lagged the S&P 500's 0.81% gain on the day. On the other hand, the Dow registered a gain of 0.39%, and the technology-centric Nasdaq increased by 1.35%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 14.41% over the past month. This has lagged the Retail-Wholesale sector's loss of 7.92% and the S&P 500's loss of 6.19% in that time.
The upcoming earnings release of MercadoLibre will be of great interest to investors. 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.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $20.56 per share and revenue of $13.95 billion. These totals would mark changes of +115.74% and +32.34%, respectively, from last year.
Investors should also note any 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. MercadoLibre presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, MercadoLibre is presently trading at a Forward P/E ratio of 59.74. Its industry sports an average Forward P/E of 19.57, so one might conclude that MercadoLibre is trading at a premium comparatively.
It is also worth noting that MELI currently has a PEG ratio of 1.28. 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. MELI's industry had an average PEG ratio of 0.73 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 72, placing it within the top 29% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.