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

MercadoLibre (MELI) closed at $2,056.09 in the latest trading session, marking a +0.43% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.27%. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 0.26%.The operator of an online marketplace and payments system in Latin America's stock has dropped by 0.84% in the past month, falling short of the Retail-Wholesale sector's loss of 0.61% and the S&P 500's gain of 2%.The upcoming earnings release of MercadoLibre will be of great interest to investors. The company is forecasted to report an EPS of $11.27, showcasing a 57.4% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $5.25 billion, indicating a 39.52% growth compared to the corresponding quarter of the prior year.MELI's full-year Zacks Consensus Estimates are calling for earnings of $37.70 per share and revenue of $20.51 billion. These results would represent year-over-year changes of +93.73% and +41.74%, respectively.Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 has shifted 3.08% upward. MercadoLibre is holding a Zacks Rank of #2 (Buy) right now.With respect to valuation, MercadoLibre is currently being traded at a Forward P/E ratio of 54.3. This signifies a premium in comparison to the average Forward P/E of 23.27 for its industry.It is also worth noting that MELI currently has a PEG ratio of 1.25. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.25.The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 66, positioning it in the top 27% of all 250+ industries.The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks