In the latest trading session, MercadoLibre (MELI) closed at $1,942.25, marking a +1.94% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.38%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 5.95% in the past month. In that same time, the Retail-Wholesale sector gained 3.91%, while the S&P 500 gained 2.33%.
MELI will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.39, up 135.14% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.23 billion, up 82.49% from the prior-year quarter.
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. 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. 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.
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, the Zacks Consensus EPS estimate remained stagnant. MELI is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MELI is holding a Forward P/E ratio of 508.46. This represents a premium compared to its industry's average Forward P/E of 55.68.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 24% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
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