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

MercadoLibre (MELI) closed at $837.44 in the latest trading session, marking a +1.37% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.75%. At the same time, the Dow added 0.4%, and the tech-heavy Nasdaq gained 10.36%.

Coming into today, shares of the operator of an online marketplace and payments system in Latin America had lost 4.28% in the past month. In that same time, the Retail-Wholesale sector lost 6.09%, while the S&P 500 lost 5.98%.

Wall Street will be looking for positivity from MercadoLibre as it approaches its next earnings report date. In that report, analysts expect MercadoLibre to post earnings of $2.11 per share. This would mark year-over-year growth of 329.35%. Our most recent consensus estimate is calling for quarterly revenue of $2.94 billion, up 38.18% from the year-ago period.

Investors should also note any recent changes to analyst estimates for MercadoLibre. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note MercadoLibre's current valuation metrics, including its Forward P/E ratio of 58.2. This represents a premium compared to its industry's average Forward P/E of 17.13.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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