MercadoLibre (MELI) ended the recent trading session at $2,452.89, demonstrating a +2.04% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 0.89%, while the tech-heavy Nasdaq added 0.94%.
Shares of the operator of an online marketplace and payments system in Latin America witnessed a loss of 4.15% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.02%, and the S&P 500's gain of 0.5%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. 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. At the same time, our most recent consensus estimate is projecting a revenue of $6.52 billion, reflecting a 28.57% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $47.75 per share and revenue of $27.35 billion. These totals would mark changes of +26.69% and +31.66%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.35% lower within the past month. Right now, MercadoLibre possesses a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is presently being traded at a Forward P/E ratio of 50.34. This denotes a premium relative to the industry average Forward P/E of 25.03.
Also, we should mention that MELI has a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.34 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 250 industries.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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