MercadoLibre (MELI) closed the most recent trading day at $1,975.19, moving +0.45% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a rise of 0.71%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Shares of the operator of an online marketplace and payments system in Latin America witnessed a gain of 11.02% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 8.29% and the S&P 500's gain of 1.7%.
The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company is forecasted to report an EPS of $7.26, showcasing a 123.38% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.84 billion, indicating a 37.11% growth compared to the corresponding quarter of the prior year.
Investors should also note any recent changes to analyst estimates for MercadoLibre. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.54% downward. MercadoLibre is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 44.74 right now. This indicates a premium in contrast to its industry's Forward P/E of 20.55.
We can also see that MELI currently has a PEG ratio of 1.04. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.1 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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