MercadoLibre (MELI) ended the recent trading session at $1,813.91, demonstrating a -2.34% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.01%. Elsewhere, the Dow lost 0.77%, while the tech-heavy Nasdaq lost 1.4%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 13.59% over the past month, outpacing the Retail-Wholesale sector's gain of 0.78% and the S&P 500's gain of 0.32%.
Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. The company is forecasted to report an EPS of $8.69, showcasing a 15.71% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $9.77 billion, up 43.9% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $41 per share and revenue of $40.36 billion, which would represent changes of +4.06% and +39.68%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 0.07% higher within the past month. MercadoLibre presently features a Zacks Rank of #2 (Buy).
Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 45.31. This valuation marks a premium compared to its industry average Forward P/E of 17.3.
We can also see that MELI currently has a PEG ratio of 1.14. 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 1.1 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 31% echelons 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.
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).