MercadoLibre (MELI) closed at $2,402.10 in the latest trading session, marking a -3.03% move from the prior day. This change lagged the S&P 500's 0.28% gain on the day. Meanwhile, the Dow gained 0.43%, and the Nasdaq, a tech-heavy index, added 0.09%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 3.77% over the past month, outpacing the Retail-Wholesale sector's gain of 0.87% and lagging the S&P 500's gain of 4.37%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. It is anticipated that the company will report an EPS of $12.01, marking a 14.6% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $6.52 billion, up 28.57% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $47.75 per share and revenue of $27.35 billion, indicating changes of +26.69% and +31.66%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.31% lower. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 51.88. This valuation marks a premium compared to its industry average Forward P/E of 24.64.
We can additionally observe that MELI currently boasts a PEG ratio of 1.47. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. MELI's industry had an average PEG ratio of 1.42 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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MercadoLibre, Inc. (MELI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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