Yahoo Finance MercadoLibre (MELI) Stock Falls Amid Market Uptick: What Investors Need to Know
MercadoLibre (MELI) closed at $1,703.55 in the latest trading session, marking a -1.07% move from the prior day. This move lagged the S&P 500's daily gain of 1.02%. Elsewhere, the Dow gained 1.09%, while the tech-heavy Nasdaq added 1.18%.
Shares of the operator of an online marketplace and payments system in Latin America have appreciated by 8.99% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 4.44%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company is predicted to post an EPS of $8.94, indicating a 73.26% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.74 billion, indicating a 38.7% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $33.81 per share and revenue of $19.7 billion. These totals would mark changes of +73.74% and +36.13%, respectively, from last year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. MercadoLibre is currently a Zacks Rank #3 (Hold).
With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 50.94. This signifies a premium in comparison to the average Forward P/E of 19.58 for its industry.
Also, we should mention that MELI has a PEG ratio of 1.26. 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. The average PEG ratio for the Internet - Commerce industry stood at 1.03 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 47, this industry ranks in the top 19% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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 Report
