MercadoLibre closed its most recent trading session at $1,856.34, an increase of +0.2% over the previous trading sessions. This beat the daily loss of 0.58% suffered by S&P 500.
Before today’s trading, the shares of the Latin American operator of an online marketplace had gained 3.21% in the last month. This is more than the Retail-Wholesale sector’s gain by 0.47%, and that of the S&P 500 by 0.16%.
MELI will likely show strength as investors look forward to its next earnings report. The expected earnings per share (EPS) of the company will be $1.27. This is an increase of 353.57% over the previous-year quarter. The most recent consensus estimate for the quarter is $1.84 Billion, an increase of 64.87% over last year.
Our Zacks Consensus estimates for the entire year show analysts expecting earnings to reach $2.74 per share, and revenues of $6.99 million. This would represent an increase of +3525% or +75.96% compared to last year.
Investors should note any recent revisions to MELI analyst estimates. This helps to illustrate the changing nature of short-term business trends. Positive estimate revisions can be viewed as a sign that the company is optimistic about its business outlook.
Research shows these changes in estimate are directly related to near-term stock price movements. To capitalize on this phenomenon, we created the Zacks Rank. This system considers these changes and provides a simple, practical rating model.
The Zacks Rank System has a track record that outperforms, with stocks ranging from #1 (Strong Buy), to #5 (“Strong Sell”) since 1988. Since then, the average return for #1 stocks is +25% per year. In the last month, Zacks Consensus EPS estimates remained flat. MELI is currently ranked #1 by Zacks (Strong Buy).
MELI has a forward P/E ratio 676.14, according to its valuation. This is a significant premium when compared with the industry average Forward P/E ratio of 49.56.
Internet Commerce is part of Retail-Wholesale. The current Zacks Industry Rank for this industry is 206. This puts it among the lowest 19% of all 250+ Industries.
This Zacks Industry Rank is ranked in order of best to worst according to the Zacks Rank for each sector. Research shows that top-rated industries are able to outperform bottom 50% by an average of 2 to 1.
Zacks.com has more details about all these metrics and many more.
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Publited at Wed 15 Sep 2021, 00:11.54 +0000