MercadoLibre (MELI - Free Report) closed at $621.42 in the latest trading session, marking a -1.95% move from the prior day. This change lagged the S&P 500's daily loss of 1.09%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 1.19%.
Prior to today's trading, shares of the operator of an online marketplace and payments system in Latin America had gained 1.08% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.21% and the S&P 500's gain of 2.62% in that time.
Investors will be hoping for strength from MELI as it approaches its next earnings release, which is expected to be August 7, 2019. In that report, analysts expect MELI to post earnings of $0.28 per share. This would mark year-over-year growth of 212%. Meanwhile, our latest consensus estimate is calling for revenue of $497.58 million, up 48.36% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.16 per share and revenue of $2.15 billion, which would represent changes of +241.46% and +49.62%, respectively, from the prior year.
Any recent changes to analyst estimates for MELI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. MELI is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, MELI is holding a Forward P/E ratio of 545.58. This valuation marks a premium compared to its industry's average Forward P/E of 27.65.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 90, 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.