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MercadoLibre (MELI) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw MercadoLibre (MELI - Free Report) ending at $2,100.58, denoting a +1% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.18% for the day. Elsewhere, the Dow saw a downswing of 0.8%, while the tech-heavy Nasdaq appreciated by 0.27%.

Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had lost 1.14% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.95% and the S&P 500's gain of 4.46% in that time.

The investment community will be paying close attention to the earnings performance of MercadoLibre in its upcoming release. The company's earnings per share (EPS) are projected to be $11.27, reflecting a 57.4% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $5.25 billion, reflecting a 39.52% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $37.55 per share and revenue of $20.51 billion. These totals would mark changes of +92.96% and +41.74%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

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, 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. Over the past month, there's been a 4.12% rise in the Zacks Consensus EPS estimate. Currently, MercadoLibre is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, MercadoLibre is at present trading with a Forward P/E ratio of 55.38. This indicates a premium in contrast to its industry's Forward P/E of 23.63.

Investors should also note that MELI has a PEG ratio of 1.27 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.05.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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