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In the latest trading session, MercadoLibre (MELI) closed at $1,468.06, marking a +0.37% move from the previous day. The stock outpaced the S&P 500's daily loss of 1.31%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had gained 6.37% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.02% and the S&P 500's gain of 1.56% in that time.
Investors will be hoping for strength from MELI as it approaches its next earnings release. The company is expected to report EPS of -$0.10, down 109.01% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.46 billion, up 66.59% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of -$1 per share and revenue of $6.35 billion. These results would represent year-over-year changes of -1150% and +59.92%, respectively.
It is also important to note the recent changes to analyst estimates for MELI. 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.85% lower. MELI is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, MELI is holding a Forward P/E ratio of 5519.17. Its industry sports an average Forward P/E of 57.43, 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 224, which puts it in the bottom 12% 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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