MercadoLibre (MELI) Advances While Market Declines: Some Information for Investors

In the latest market close, MercadoLibre (MELI) reached $1,846, with a +0.14% movement compared to the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.46%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq lost 3.07%.

Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 6.84% in the past month. In that same time, the Retail-Wholesale sector gained 2.27%, while the S&P 500 gained 1.08%.

The investment community will be closely monitoring the performance of MercadoLibre in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $7.26, reflecting a 123.38% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $5.84 billion, up 37.11% from the year-ago period.

Investors should also pay attention to any latest changes in analyst estimates for MercadoLibre. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.54% decrease. MercadoLibre is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, MercadoLibre is currently trading at a Forward P/E ratio of 41.94. This signifies a premium in comparison to the average Forward P/E of 21.67 for its industry.

We can additionally observe that MELI currently boasts a PEG ratio of 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 1.18 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 70, putting it in the top 28% 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.