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MercadoLibre (MELI) Rises But Trails Market: What Investors Should Know September 19, 2024
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In the latest market close, MercadoLibre (MELI - Free Report) reached $2,109.40, with a +0.32% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.7%. Elsewhere, the Dow saw an upswing of 1.26%, while the tech-heavy Nasdaq appreciated by 2.51%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 4.74% over the past month, outpacing the Retail-Wholesale sector's gain of 4.02% and the S&P 500's gain of 1.27% in that time.
The upcoming earnings release of MercadoLibre will be of great interest to investors. On that day, MercadoLibre is projected to report earnings of $9.43 per share, which would represent year-over-year growth of 31.7%. Simultaneously, our latest consensus estimate expects the revenue to be $5.22 billion, showing a 38.93% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $35.18 per share and a revenue of $20.41 billion, signifying shifts of +80.78% and +41.02%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 1.37% higher within the past month. At present, MercadoLibre boasts a Zacks Rank of #3 (Hold).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 59.78. This expresses a premium compared to the average Forward P/E of 22.72 of its industry.
We can also see that MELI currently has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry currently had an average PEG ratio of 1.05 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
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.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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In the latest market close, MercadoLibre (MELI - Free Report) reached $2,109.40, with a +0.32% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.7%. Elsewhere, the Dow saw an upswing of 1.26%, while the tech-heavy Nasdaq appreciated by 2.51%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 4.74% over the past month, outpacing the Retail-Wholesale sector's gain of 4.02% and the S&P 500's gain of 1.27% in that time.
The upcoming earnings release of MercadoLibre will be of great interest to investors. On that day, MercadoLibre is projected to report earnings of $9.43 per share, which would represent year-over-year growth of 31.7%. Simultaneously, our latest consensus estimate expects the revenue to be $5.22 billion, showing a 38.93% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $35.18 per share and a revenue of $20.41 billion, signifying shifts of +80.78% and +41.02%, 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 1.37% higher within the past month. At present, MercadoLibre boasts a Zacks Rank of #3 (Hold).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 59.78. This expresses a premium compared to the average Forward P/E of 22.72 of its industry.
We can also see that MELI currently has a PEG ratio of 1.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry currently had an average PEG ratio of 1.05 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
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.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.