In the latest trading session, MercadoLibre (MELI) closed at $1,124.62, marking a +1.55% move from the previous day. This change outpaced the S&P 500’s 0.77% gain on the day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq gained 1.49%.
Heading into today, shares of the operator of an online marketplace and payments system in Latin America had gained 12.05% over the past month, outpacing the Retail-Wholesale sector’s gain of 9.49% and the S&P 500’s gain of 5.03% in that time.
Investors will be hoping for strength from MELI as it approaches its next earnings release, which is expected to be August 6, 2020. On that day, MELI is projected to report earnings of $0.10 per share, which would represent a year-over-year decline of 67.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales 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.
It is also important to note the recent changes to analyst estimates for MELI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 9.11% higher. MELI currently has a Zacks Rank of #2 (Buy).
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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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