In the latest trading session, MercadoLibre (MELI) closed at $1,963.23, marking a +0.16% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.96% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
The operator of an online marketplace and payments system in Latin America’s stock has dropped by 1.31% in the past month, falling short of the Retail-Wholesale sector’s gain of 7.74% and the S&P 500’s gain of 4.3%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. The company is predicted to post an EPS of $11.27, indicating a 57.4% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.25 billion, up 39.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $37.55 per share and a revenue of $20.51 billion, demonstrating changes of +92.96% and +41.74%, respectively, from the preceding 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. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.62% higher within the past month. Currently, MercadoLibre is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 52.19 right now. This signifies a premium in comparison to the average Forward P/E of 22.93 for its industry.
Also, we should mention that MELI has a PEG ratio of 1.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Internet – Commerce industry currently had an average PEG ratio of 1.01 as of yesterday’s close.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
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