MercadoLibre (MELI) Advances But Underperforms Market: Key Facts
The most recent trading session ended with MercadoLibre (MELI) standing at $1,529.94, reflecting a +0.29% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1.03%. Elsewhere, the Dow saw an upswing of 0.34%, while the tech-heavy Nasdaq appreciated by 1.51%.
Shares of the operator of an online marketplace and payments system in Latin America witnessed a loss of 10.99% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.93% and the S&P 500's gain of 3.21%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. It is anticipated that the company will report an EPS of $7.01, marking a 76.57% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.94 billion, up 29.85% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $34.85 per share and a revenue of $17.81 billion, signifying shifts of +79.09% and +23.06%, respectively, from the last year.
Any recent changes to analyst estimates for MercadoLibre should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.84% lower. MercadoLibre currently has a Zacks Rank of #3 (Hold).
In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 43.78. For comparison, its industry has an average Forward P/E of 19.57, which means MercadoLibre is trading at a premium to the group.
Also, we should mention that MELI has a PEG ratio of 1.03. 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. MELI's industry had an average PEG ratio of 0.54 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 144, positioning it in the bottom 43% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
