In the latest trading session, MercadoLibre (MELI) closed at $2,067.57, marking a +0.08% move from the previous day. This change outpaced the S&P 500's 0.22% loss on the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.33%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 0.47% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9.98% and the S&P 500's loss of 7.48% in that time.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company is expected to report EPS of $7.82, up 15.34% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $5.5 billion, reflecting a 27% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $47.50 per share and a revenue of $25.89 billion, signifying shifts of +26.03% and +24.59%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 8.06% higher. At present, MercadoLibre boasts a Zacks Rank of #2 (Buy).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 43.49. This signifies a premium in comparison to the average Forward P/E of 21.86 for its industry.
Also, we should mention that MELI has a PEG ratio of 1.16. 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 industry had an average PEG ratio of 1.16 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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
This article originally published on Zacks Investment Research (zacks.com).
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