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

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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,135.75, moving +1.77% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.12%. At the same time, the Dow added 1.01%, and the tech-heavy Nasdaq lost 0.08%.

Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had gained 17.18% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.08% and the S&P 500's gain of 4.63% in that time.

MercadoLibre will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.64, up 429.03% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.99 billion, up 44.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $7.21 per share and revenue of $9.69 billion, which would represent changes of +331.74% and +37.12%, respectively, from the prior year.

Investors should also note any 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. 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 154.82 right now. For comparison, its industry has an average Forward P/E of 24.37, which means MercadoLibre is trading at a premium to the group.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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