MercadoLibre (MELI) closed the most recent trading day at $1,313.64, moving -0.34% from the previous trading session. This change lagged the S&P 500's 0.37% gain on the day. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 7.44% in the past month. In that same time, the Retail-Wholesale sector gained 3.65%, while the S&P 500 gained 3.71%.
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 $2.14, up 64.62% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 28.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.97 per share and revenue of $12.96 billion. These totals would mark changes of +57.08% and +22.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection has moved 5.12% lower. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 88.05 right now. This represents a premium compared to its industry's average Forward P/E of 18.3.
It is also worth noting that MELI currently has a PEG ratio of 2.06. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. MELI's industry had an average PEG ratio of 1.17 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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