MercadoLibre (MELI) ended the recent trading session at $1,742.19, demonstrating a +2.64% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.22% for the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.66%.
Shares of the operator of an online marketplace and payments system in Latin America witnessed a gain of 1.47% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 5.51%, and the S&P 500's loss of 1.21%.
The upcoming earnings release of MercadoLibre will be of great interest to investors. The company's upcoming EPS is projected at $8.69, signifying a 15.71% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $9.77 billion, indicating a 43.9% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $40.97 per share and a revenue of $40.36 billion, indicating changes of +3.98% and +39.68%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MercadoLibre is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 41.43. This expresses a premium compared to the average Forward P/E of 17.07 of its industry.
Investors should also note that MELI has a PEG ratio of 1.05 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 182, which puts it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
MercadoLibre, Inc. (MELI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).