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

MercadoLibre (MELI) ended the recent trading session at $1,585.03, demonstrating a +0.74% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.25% for the day. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, lost 0.79%.

Shares of the operator of an online marketplace and payments system in Latin America have depreciated by 9.41% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.1% and the S&P 500's gain of 3.59%.

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 $8.94, showcasing a 73.26% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $4.74 billion, reflecting a 38.7% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $33.81 per share and revenue of $19.7 billion, indicating changes of +73.74% and +36.13%, respectively, compared to the previous year.

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It's also important for investors to be aware of any recent modifications 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained steady. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, MercadoLibre is at present trading with a Forward P/E ratio of 46.54. This valuation marks a premium compared to its industry's average Forward P/E of 20.

It's also important to note that MELI currently trades at a PEG ratio of 1.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 0.94 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 80, positioning it in the top 32% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.

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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

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Zacks Investment Research