MercadoLibre (MELI) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, MercadoLibre (MELI) closed at $1,740, marking a -1.07% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.86%, and the technology-centric Nasdaq decreased by 0.38%.The the stock of operator of an online marketplace and payments system in Latin America has fallen by 3.57% in the past month, leading the Retail-Wholesale sector's loss of 4.64% and undershooting the S&P 500's loss of 2.2%.Analysts and investors alike will be keeping a close eye on the performance of MercadoLibre in its upcoming earnings disclosure. The company is expected to report EPS of $7.26, up 123.38% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $5.86 billion, indicating a 37.48% growth compared to the corresponding quarter of the prior year.It's also important for investors to be aware of any recent modifications to analyst estimates for MercadoLibre. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.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. Over the past month, there's been a 2.59% fall in the Zacks Consensus EPS estimate. As of now, MercadoLibre holds a Zacks Rank of #3 (Hold).From a valuation perspective, MercadoLibre is currently exchanging hands at a Forward P/E ratio of 40.19. For comparison, its industry has an average Forward P/E of 20.96, which means MercadoLibre is trading at a premium to the group.It's also important to note that MELI currently trades at a PEG ratio of 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.19.The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 88, this industry ranks in the top 36% of all industries, numbering over 250.The Zacks Industry Rank is ordered 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.Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report MercadoLibre, Inc. (MELI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks