Yahoo Finance MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
MercadoLibre (MELI) closed the most recent trading day at $1,580.53, moving -1.18% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 0.23%. At the same time, the Dow lost 0.17%, and the tech-heavy Nasdaq gained 0.34%.
The operator of an online marketplace and payments system in Latin America's shares have seen a decrease of 6.93% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.79% and the S&P 500's gain of 3.96%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company is expected to report EPS of $8.94, up 73.26% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.74 billion, up 38.7% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $33.81 per share and revenue of $19.7 billion. These results would represent year-over-year changes of +73.74% and +36.13%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for MercadoLibre. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has shifted 0.44% downward. MercadoLibre currently has a Zacks Rank of #3 (Hold).
In the context of valuation, MercadoLibre is at present trading with a Forward P/E ratio of 47.31. This denotes a premium relative to the industry's average Forward P/E of 18.1.
We can also see that MELI currently has a PEG ratio of 1.17. 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. MELI's industry had an average PEG ratio of 0.96 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
