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MercadoLibre (MELI) closed the latest trading day at $2,139.92, indicating a +0.54% change from the previous session's end. This move lagged the S&P 500's daily gain of 1.67%. Elsewhere, the Dow gained 1.07%, while the tech-heavy Nasdaq added 2.5%.
The operator of an online marketplace and payments system in Latin America's stock has dropped by 2.87% in the past month, exceeding the Retail-Wholesale sector's loss of 4.21% and the S&P 500's loss of 6.57%.
The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company's upcoming EPS is projected at $7.67, signifying a 13.13% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $5.53 billion, indicating a 27.54% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $46.12 per share and a revenue of $25.79 billion, signifying shifts of +22.37% and +24.15%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These revisions help to show the ever-changing nature of near-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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 2.9% fall in the Zacks Consensus EPS estimate. MercadoLibre is currently a Zacks Rank #3 (Hold).
With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 46.15. This indicates a premium in contrast to its industry's Forward P/E of 23.39.
We can additionally observe that MELI currently boasts a PEG ratio of 1.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 1.28 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 59, this industry ranks in the top 24% of all industries, numbering over 250.