MercadoLibre (MELI) Dips More Than Broader Markets: What You Should Know
MercadoLibre (MELI) closed the most recent trading day at $1,403.42, moving -1.99% from the previous trading session. This change lagged the S&P 500's daily loss of 0.09%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq lost 0.6%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 11.23% over the past month, lagging the Retail-Wholesale sector's gain of 1.52% and the S&P 500's gain of 4.45% in that time.
Wall Street will be looking for positivity from MELI as it approaches its next earnings report date. On that day, MELI is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 190.91%. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 83.49% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $2.06 per share and revenue of $5.93 billion. These results would represent year-over-year changes of +2675% and +49.15%, respectively.
Investors should also note any recent changes to analyst estimates for MELI. These revisions help to show the ever-changing nature 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 shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 42.78% lower within the past month. MELI is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, MELI currently has a Forward P/E ratio of 696.58. This represents a premium compared to its industry's average Forward P/E of 59.3.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 17% 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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