MercadoLibre (MELI) closed the most recent trading day at $1,965.05, moving +1.28% from the previous trading session. This change outpaced the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.57%, while the tech-heavy Nasdaq added 0.09%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 14.77% in the past month. In that same time, the Retail-Wholesale sector gained 1.92%, while the S&P 500 gained 4.43%.
MELI will be looking to display strength as it nears its next earnings release. On that day, MELI is projected to report earnings of $0.39 per share, which would represent year-over-year growth of 135.14%. Our most recent consensus estimate is calling for quarterly revenue of $1.23 billion, up 82.49% from the year-ago period.
Investors might also notice recent changes to analyst estimates for MELI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, 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. Within the past 30 days, our consensus EPS projection has moved 15.89% lower. MELI is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, MELI currently has a Forward P/E ratio of 517.78. Its industry sports an average Forward P/E of 50.8, so we one might conclude that MELI is trading at a premium comparatively.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 218, which puts it in the bottom 15% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
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