MercadoLibre (MELI) closed the latest trading day at $2,139.92, indicating a +0.54% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.67%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 2.87% in the past month, exceeding the Retail-Wholesale sector's loss of 4.21% and the S&P 500's loss of 6.57%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company's upcoming EPS is projected at $7.67, signifying a 13.13% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.53 billion, indicating a 27.54% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $46.12 per share and a revenue of $25.79 billion, signifying shifts of +22.37% and +24.15%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 2.9% fall in the Zacks Consensus EPS estimate. MercadoLibre is currently a Zacks Rank #3 (Hold).
With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 46.15. This indicates a premium in contrast to its industry's Forward P/E of 23.39.
We can additionally observe that MELI currently boasts a PEG ratio of 1.23. 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. The Internet - Commerce industry had an average PEG ratio of 1.28 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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MercadoLibre, Inc. (MELI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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