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MercadoLibre (MELI) closed the most recent trading day at $655.69, moving -0.01% from the previous trading session. This move was narrower than the S&P 500's daily loss of 0.3%. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had lost 2.52% over the past month, lagging the Retail-Wholesale sector's gain of 4.44% and the S&P 500's gain of 1.51% in that time.
Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. The company is expected to report EPS of $1.73, up 26.28% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.49 billion, up 46.39% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.64 per share and revenue of $10.49 billion. These totals would mark changes of +297.6% and +48.34%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. MercadoLibre is holding a Zacks Rank of #5 (Strong Sell) right now.
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 98.79. For comparison, its industry has an average Forward P/E of 21.98, which means MercadoLibre is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 154, putting it in the bottom 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
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