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MercadoLibre (MELI) Outpaces Stock Market Gains: What You Should Know

MercadoLibre (MELI) closed the most recent trading day at $1,191.55, moving +0.41% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.24%, while the tech-heavy Nasdaq added 0.34%.

Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 6.11% over the past month, outpacing the Retail-Wholesale sector's loss of 3.15% and the S&P 500's loss of 1.21% in that time.

MercadoLibre will be looking to display strength as it nears its next earnings release. In that report, analysts expect MercadoLibre to post earnings of $3.04 per share. This would mark year-over-year growth of 133.85%. Our most recent consensus estimate is calling for quarterly revenue of $2.88 billion, up 28.01% from the year-ago period.

MELI's full-year Zacks Consensus Estimates are calling for earnings of $14.97 per share and revenue of $12.96 billion. These results would represent year-over-year changes of +57.08% and +22.99%, respectively.

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Investors might also notice recent changes to analyst estimates for MercadoLibre. Recent revisions tend to reflect the latest near-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.62% lower. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 79.26. For comparison, its industry has an average Forward P/E of 18.69, which means MercadoLibre is trading at a premium to the group.

Also, we should mention that MELI has a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.13 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 81, which puts it in the top 33% 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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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

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