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Here's Why MercadoLibre (MELI) Fell More Than Broader Market
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The most recent trading session ended with MercadoLibre (MELI - Free Report) standing at $1,175, reflecting a -1.34% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 1.18%. Elsewhere, the Dow saw a downswing of 0.76%, while the tech-heavy Nasdaq depreciated by 1.76%.
The operator of an online marketplace and payments system in Latin America's shares have seen a decrease of 5.22% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.94% and the S&P 500's loss of 3.35%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $5.85, reflecting a 128.52% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.57 billion, showing a 32.84% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.45 per share and a revenue of $13.92 billion, indicating changes of +114.59% and +32.11%, respectively, from the former year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.54% downward. MercadoLibre presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 58.24 right now. This represents a premium compared to its industry's average Forward P/E of 19.27.
It is also worth noting that MELI currently has a PEG ratio of 1.24. 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. The Internet - Commerce was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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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Here's Why MercadoLibre (MELI) Fell More Than Broader Market
The most recent trading session ended with MercadoLibre (MELI - Free Report) standing at $1,175, reflecting a -1.34% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily loss of 1.18%. Elsewhere, the Dow saw a downswing of 0.76%, while the tech-heavy Nasdaq depreciated by 1.76%.
The operator of an online marketplace and payments system in Latin America's shares have seen a decrease of 5.22% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.94% and the S&P 500's loss of 3.35%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $5.85, reflecting a 128.52% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $3.57 billion, showing a 32.84% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $20.45 per share and a revenue of $13.92 billion, indicating changes of +114.59% and +32.11%, respectively, from the former year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.54% downward. MercadoLibre presently features a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 58.24 right now. This represents a premium compared to its industry's average Forward P/E of 19.27.
It is also worth noting that MELI currently has a PEG ratio of 1.24. 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. The Internet - Commerce was holding an average PEG ratio of 0.72 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 97, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.