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

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MercadoLibre (MELI - Free Report) closed at $1,623.01 in the latest trading session, marking a +1.38% move from the prior day. This move outpaced the S&P 500's daily gain of 0.18%.

Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 14.15% over the past month, outpacing the Retail-Wholesale sector's gain of 0.73% and the S&P 500's gain of 6.99% in that time.

Investors will be hoping for strength from MELI as it approaches its next earnings release. On that day, MELI is projected to report earnings of $0.40 per share, which would represent year-over-year growth of 190.91%. Meanwhile, our latest consensus estimate is calling for revenue of $1.2 billion, up 83.49% from the prior-year quarter.

MELI's full-year Zacks Consensus Estimates are calling for earnings of $2.06 per share and revenue of $5.93 billion. These results would represent year-over-year changes of +2675% and +49.15%, respectively.

Investors should also note any recent changes to analyst estimates for MELI. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. MELI is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that MELI has a Forward P/E ratio of 778.76 right now. This valuation marks a premium compared to its industry's average Forward P/E of 63.91.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 213, putting it in the bottom 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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