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MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,720.43, marking a -1.35% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
Shares of the operator of an online marketplace and payments system in Latin America have appreciated by 11.85% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.58% and the S&P 500's gain of 3.82%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. The company is forecasted to report an EPS of $8.94, showcasing a 73.26% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $4.74 billion, indicating a 38.7% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $33.81 per share and a revenue of $19.7 billion, indicating changes of +73.74% and +36.13%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is presently being traded at a Forward P/E ratio of 51.58. This denotes a premium relative to the industry's average Forward P/E of 22.35.
Meanwhile, MELI's PEG ratio is currently 1.27. 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 had an average PEG ratio of 1.08 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 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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MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, MercadoLibre (MELI - Free Report) closed at $1,720.43, marking a -1.35% move from the previous day. This move lagged the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.85%, while the tech-heavy Nasdaq appreciated by 0.2%.
Shares of the operator of an online marketplace and payments system in Latin America have appreciated by 11.85% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.58% and the S&P 500's gain of 3.82%.
Investors will be eagerly watching for the performance of MercadoLibre in its upcoming earnings disclosure. The company is forecasted to report an EPS of $8.94, showcasing a 73.26% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $4.74 billion, indicating a 38.7% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $33.81 per share and a revenue of $19.7 billion, indicating changes of +73.74% and +36.13%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is presently being traded at a Forward P/E ratio of 51.58. This denotes a premium relative to the industry's average Forward P/E of 22.35.
Meanwhile, MELI's PEG ratio is currently 1.27. 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 had an average PEG ratio of 1.08 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 59, which puts it in the top 24% of all 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.