Yahoo Finance MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
MercadoLibre (MELI) closed the most recent trading day at $1,584.73, moving -0.21% from the previous trading session. This move lagged the S&P 500's daily gain of 0.77%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 7.41% in the past month. In that same time, the Retail-Wholesale sector gained 4.37%, while the S&P 500 gained 7.34%.
Wall Street will be looking for positivity from MELI as it approaches its next earnings report date. In that report, analysts expect MELI to post earnings of $0.40 per share. This would mark year-over-year growth of 190.91%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.2 billion, up 83.49% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $2.06 per share and revenue of $5.93 billion. These results would represent year-over-year changes of +2675% and +49.15%, respectively.
It is also important to note the recent changes to analyst estimates for MELI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Within the past 30 days, our consensus EPS projection remained stagnant. MELI is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, MELI is currently trading at a Forward P/E ratio of 750.1. For comparison, its industry has an average Forward P/E of 62.61, which means MELI is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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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