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

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MercadoLibre (MELI - Free Report) closed the most recent trading day at $1,095, moving -0.28% from the previous trading session. This change lagged the S&P 500's 1.19% gain on the day. Elsewhere, the Dow gained 0.76%, while the tech-heavy Nasdaq added 0.29%.

Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had gained 25.02% over the past month. This has outpaced the Retail-Wholesale sector's gain of 8.04% and the S&P 500's gain of 4.06% in that time.

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%. Meanwhile, our latest consensus estimate is calling for revenue of $2.94 billion, up 38.08% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for MercadoLibre. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 4.35% higher within the past month. MercadoLibre currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, MercadoLibre is holding a Forward P/E ratio of 74.13. Its industry sports an average Forward P/E of 21.82, so we one might conclude that MercadoLibre is trading at a premium comparatively.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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

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