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MercadoLibre (MELI) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, MercadoLibre (MELI - Free Report) closed at $789.20, marking a +1.22% move from the previous day. This move outpaced the S&P 500's daily gain of 0.99%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.31%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 15.1% over the past month, outpacing the Retail-Wholesale sector's gain of 10.59% and the S&P 500's gain of 7.91% in that time.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. The company is expected to report EPS of $1.69, up 23.36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.48 billion, up 45.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.21 per share and revenue of $10.37 billion. These totals would mark changes of +271.86% and +46.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.39% lower. MercadoLibre is currently a Zacks Rank #5 (Strong Sell).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 125.47. This represents a premium compared to its industry's average Forward P/E of 24.31.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 48% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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MercadoLibre (MELI) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, MercadoLibre (MELI - Free Report) closed at $789.20, marking a +1.22% move from the previous day. This move outpaced the S&P 500's daily gain of 0.99%. Elsewhere, the Dow gained 0.51%, while the tech-heavy Nasdaq lost 0.31%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 15.1% over the past month, outpacing the Retail-Wholesale sector's gain of 10.59% and the S&P 500's gain of 7.91% in that time.
Investors will be hoping for strength from MercadoLibre as it approaches its next earnings release. The company is expected to report EPS of $1.69, up 23.36% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.48 billion, up 45.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.21 per share and revenue of $10.37 billion. These totals would mark changes of +271.86% and +46.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 6.39% lower. MercadoLibre is currently a Zacks Rank #5 (Strong Sell).
Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 125.47. This represents a premium compared to its industry's average Forward P/E of 24.31.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 48% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.