In the latest trading session, MercadoLibre (MELI) closed at $2,476.37, marking a +1.23% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.48% for the day. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 0.94%.
The operator of an online marketplace and payments system in Latin America's shares have seen an increase of 4.72% over the last month, surpassing the Retail-Wholesale sector's gain of 3.02% and the S&P 500's gain of 2.46%.
Market participants will be closely following the financial results of MercadoLibre in its upcoming release. The company's upcoming EPS is projected at $9.88, signifying a 26.18% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $7.17 billion, indicating a 35.05% upward movement from the same quarter last year.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $44.43 per share and revenue of $27.78 billion. These results would represent year-over-year changes of +17.88% and +33.72%, respectively.
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 a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MercadoLibre is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 55.06. This signifies a premium in comparison to the average Forward P/E of 21.22 for its industry.
Investors should also note that MELI has a PEG ratio of 1.59 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.55.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 33% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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MercadoLibre, Inc. (MELI): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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