We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
MercadoLibre (MELI) Declines More Than Market: Some Information for Investors
Read MoreHide Full Article
MercadoLibre (MELI - Free Report) ended the recent trading session at $1,229.96, demonstrating a -1.12% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.63%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 10.99% in the past month. In that same time, the Retail-Wholesale sector lost 5.49%, while the S&P 500 lost 2.35%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company is expected to report EPS of $5.88, up 129.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.57 billion, up 32.86% from the prior-year quarter.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $20.56 per share and revenue of $13.95 billion. These results would represent year-over-year changes of +115.74% and +32.34%, respectively.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MercadoLibre presently features a Zacks Rank of #2 (Buy).
In the context of valuation, MercadoLibre is at present trading with a Forward P/E ratio of 60.5. This indicates a premium in contrast to its industry's Forward P/E of 20.13.
It's also important to note that MELI currently trades at a PEG ratio of 1.29. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.78.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 41% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
MercadoLibre (MELI) Declines More Than Market: Some Information for Investors
MercadoLibre (MELI - Free Report) ended the recent trading session at $1,229.96, demonstrating a -1.12% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.63%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.63%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 10.99% in the past month. In that same time, the Retail-Wholesale sector lost 5.49%, while the S&P 500 lost 2.35%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company is expected to report EPS of $5.88, up 129.69% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.57 billion, up 32.86% from the prior-year quarter.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $20.56 per share and revenue of $13.95 billion. These results would represent year-over-year changes of +115.74% and +32.34%, respectively.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MercadoLibre presently features a Zacks Rank of #2 (Buy).
In the context of valuation, MercadoLibre is at present trading with a Forward P/E ratio of 60.5. This indicates a premium in contrast to its industry's Forward P/E of 20.13.
It's also important to note that MELI currently trades at a PEG ratio of 1.29. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.78.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 102, this industry ranks in the top 41% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.