MercadoLibre (MELI) Outperforms Broader Market: What You Need to Know

MercadoLibre (MELI) closed at $2,613.63 in the latest trading session, marking a +2.09% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.52%. On the other hand, the Dow registered a gain of 0.63%, and the technology-centric Nasdaq increased by 0.48%. The operator of an online marketplace and payments system in Latin America's stock has dropped by 0.13% in the past month, falling short of the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 4.27%.The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company is forecasted to report an EPS of $12.01, showcasing a 14.6% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.52 billion, up 28.57% from the year-ago period. In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $47.75 per share and a revenue of $27.35 billion, indicating changes of +26.69% and +31.66%, respectively, from the former 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability. 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. The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 1.99% lower within the past month. As of now, MercadoLibre holds a Zacks Rank of #3 (Hold). Valuation is also important, so investors should note that MercadoLibre has a Forward P/E ratio of 53.62 right now. This indicates a premium in contrast to its industry's Forward P/E of 24.95. We can also see that MELI currently has a PEG ratio of 1.52. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.41. The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 58, finds itself in the top 24% echelons of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. To follow MELI in the coming trading sessions, be sure to utilize Zacks.com. Don’t Miss Out on These Stocks Before you make your next investing move, we have a free report that highlights the %%CTA_TEXT%% to buy.Our experts at Zacks Investment Research hand-selected these stocks for their eye-opening growth projections.Since 1988, our stock picks have more than doubled the S&P 500 with an average gain of +23.89% per year using the Zacks Rank stock-rating system.Register now to see the %%CTA_TEXT%%.7 best stocksWant 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks