MercadoLibre (MELI) closed the most recent trading day at $2,133.67, moving -6.21% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. Meanwhile, the Dow experienced a drop of 1.9%, and the technology-dominated Nasdaq saw a decrease of 3.56%.
Shares of the operator of an online marketplace and payments system in Latin America witnessed a loss of 2.7% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 4.01%, and underperforming the S&P 500's gain of 3.5%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. It is anticipated that the company will report an EPS of $9.74, marking a 24.39% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $7.18 billion, reflecting a 35.08% rise from the equivalent quarter last year.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $43.23 per share and revenue of $27.9 billion. These results would represent year-over-year changes of +14.7% and +34.27%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.69% lower. Right now, MercadoLibre possesses a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 52.62. This valuation marks a premium compared to its industry average Forward P/E of 21.68.
We can also see that MELI currently has a PEG ratio of 1.52. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.51.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% 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.
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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