MercadoLibre (MELI) Stock Declines While Market Improves: Some Information for Investors

Company Performance - MercadoLibre (MELI) closed at $2,009.34, down 1.76% from the previous trading session, underperforming the S&P 500's gain of 0.55% [1] - Over the past month, shares of MercadoLibre increased by 1.61%, outperforming the Retail-Wholesale sector's decline of 7.03% and the S&P 500's decline of 5.56% [1] Upcoming Earnings - Analysts expect MercadoLibre to report earnings of$ 7.82 per share, reflecting a year-over-year growth of 15.34% [2] - The Zacks Consensus Estimate for revenue is projected at $5.5 billion, indicating a 27% increase from the previous year [2] Full Year Projections - For the full year, earnings are projected at$ 47.50 per share and revenue at $25.89 billion, representing year-over-year changes of +26.03% and +24.59%, respectively [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for MercadoLibre are important as they reflect short-term business dynamics, with positive revisions indicating a favorable business outlook [4] Estimate Revisions and Share Price Momentum - Research shows that estimate revisions correlate with near-term share price momentum, and investors can utilize the Zacks Rank for actionable insights [5] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have delivered an average annual return of +25% since 1988 [6] - The Zacks Consensus EPS estimate for MercadoLibre has increased by 8.06% over the past month, and the company currently holds a Zacks Rank of 2 (Buy) [6] Valuation Metrics - MercadoLibre has a Forward P/E ratio of 43.06, which is a premium compared to the industry average Forward P/E of 21.95 [7] - The company has a PEG ratio of 1.15, aligning with the Internet-Commerce industry's average PEG ratio of 1.15 [7] Industry Context - The Internet-Commerce industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 65, placing it in the top 26% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]