MercadoLibre (MELI) Gains As Market Dips: What You Should Know
In the latest trading session, MercadoLibre (MELI) closed at $1,011.99, marking a +1.4% move from the previous day. This change outpaced the S&P 500's 1.16% loss on the day. Elsewhere, the Dow lost 1.84%, while the tech-heavy Nasdaq lost 0.13%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 18.08% over the past month. This has lagged the Retail-Wholesale sector's loss of 3.74% and the S&P 500's loss of 1.96% in that time.
MELI will be looking to display strength as it nears its next earnings release. In that report, analysts expect MELI to post earnings of -$0.05 per share. This would mark year-over-year growth of 94.85%. Meanwhile, our latest consensus estimate is calling for revenue of $975.90 million, up 61.83% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.09 per share and revenue of $3.51 billion, which would represent changes of +102.43% and +52.95%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for MELI. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MELI is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note MELI's current valuation metrics, including its Forward P/E ratio of 11341.59. This represents a premium compared to its industry's average Forward P/E of 47.99.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.