MercadoLibre (MELI) closed at $1,273.59 in the latest trading session, marking a -0.69% move from the prior day. This move was narrower than the S&P 500's daily loss of 3.53%. At the same time, the Dow lost 3.44%, and the tech-heavy Nasdaq lost 3.73%.
Coming into today, shares of the operator of an online marketplace and payments system in Latin America had gained 18.43% in the past month. In that same time, the Retail-Wholesale sector gained 6.39%, while the S&P 500 gained 2.89%.
MELI will be looking to display strength as it nears its next earnings release, which is expected to be November 4, 2020. The company is expected to report EPS of $0.08, up 108.25% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, up 66.91% from the year-ago period.
MELI's full-year Zacks Consensus Estimates are calling for earnings of $0.84 per share and revenue of $3.63 billion. These results would represent year-over-year changes of +122.64% and +58.29%, respectively.
Investors should also note any recent changes to analyst estimates for MELI. These revisions help to show the ever-changing nature of 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 101.81% higher within the past month. MELI is holding a Zacks Rank of #1 (Strong Buy) right now.
In terms of valuation, MELI is currently trading at a Forward P/E ratio of 1531.31. This represents a premium compared to its industry's average Forward P/E of 47.86.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% 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 Zacks.com.
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