Yahoo Finance MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
MercadoLibre (MELI) closed at $1,208.55 in the latest trading session, marking a -0.1% move from the prior day. This change lagged the S&P 500's daily gain of 0.12%. Elsewhere, the Dow gained 0.13%, while the tech-heavy Nasdaq lost 4.09%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 6.69% in the past month. In that same time, the Retail-Wholesale sector gained 4.5%, while the S&P 500 gained 3.98%.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. On that day, MercadoLibre is projected to report earnings of $4.13 per share, which would represent year-over-year growth of 69.96%. Meanwhile, our latest consensus estimate is calling for revenue of $3.22 billion, up 24.04% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $16.68 per share and revenue of $13.44 billion, which would represent changes of +75.03% and +27.58%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 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. Over the past month, the Zacks Consensus EPS estimate has moved 3.07% higher. MercadoLibre is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 72.54. This represents a premium compared to its industry's average Forward P/E of 19.3.
We can also see that MELI currently has a PEG ratio of 1.53. 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. MELI's industry had an average PEG ratio of 0.99 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% 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.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
