MercadoLibre (MELI) Stock Sinks As Market Gains: What You Should Know
MercadoLibre (MELI) closed the most recent trading day at $1,591.88, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily gain of 0.36%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 0.58% over the past month, lagging the Retail-Wholesale sector's gain of 0.74% and the S&P 500's gain of 5.21% in that time.
Wall Street will be looking for positivity from MELI as it approaches its next earnings report date. The company is expected to report EPS of $0.40, up 190.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.2 billion, up 83.49% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $2.06 per share and revenue of $5.93 billion. These results would represent year-over-year changes of +2675% and +49.15%, respectively.
Any recent changes to analyst estimates for MELI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. MELI currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that MELI has a Forward P/E ratio of 752.32 right now. This valuation marks a premium compared to its industry's average Forward P/E of 63.8.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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