In the latest trading session, MercadoLibre (MELI) closed at $988.99, marking a +0.68% move from the previous day. This change outpaced the S&P 500’s 0.62% loss on the day. Elsewhere, the Dow lost 0.69%, while the tech-heavy Nasdaq lost 0.94%.
Prior to today’s trading, shares of the operator of an online marketplace and payments system in Latin America had gained 1.12% over the past month. This has lagged the Retail-Wholesale sector’s gain of 6.61% and the S&P 500’s gain of 3.51% in that time.
Wall Street will be looking for positivity from MELI as it approaches its next earnings report date. This is expected to be July 30, 2020. In that report, analysts expect MELI to post earnings of $0.10 per share. This would mark a year-over-year decline of 67.74%. Our most recent consensus estimate is calling for quarterly revenue of $790.76 million, up 45.03% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.95 per share and revenue of $3.11 billion. These totals would mark changes of +74.39% and +35.55%, respectively, from last year.
Any recent changes to analyst estimates for MELI should also be noted by investors. 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, 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 9.11% higher within the past month. MELI is currently sporting a Zacks Rank of #3 (Hold).
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 45% 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.
To follow MELI in the coming trading sessions, be sure to utilize Zacks.com.
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