MercadoLibre (MELI) Increases Despite Market Slip: Here's What You Need to Know

Company Performance - MercadoLibre's stock closed at $2,066.12, reflecting a +0.69% change from the previous day, outperforming the S&P 500's decline of 0.93% [1] - Over the past month, MercadoLibre shares have decreased by 0.47%, while the Retail-Wholesale sector increased by 5.61% and the S&P 500 rose by 2.17% [1] - The upcoming earnings report is anticipated to show an EPS of$ 11.22, representing a 56.7% increase year-over-year, with expected quarterly revenue of $5.25 billion, up 39.59% from the previous year [1] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at$ 37.41 per share and revenue at $20.51 billion, indicating increases of +92.24% and +41.7% respectively from the prior year [2] - Recent revisions to analyst forecasts for MercadoLibre are crucial as they reflect short-term business trends, with positive revisions indicating a favorable business outlook [2] Zacks Rank and Valuation - MercadoLibre currently holds a Zacks Rank of 2 (Buy), with a 6.22% increase in the Zacks Consensus EPS estimate over the past month [3] - The company's Forward P/E ratio stands at 54.85, which is a premium compared to the industry's average Forward P/E of 23.51 [3] - The PEG ratio for MercadoLibre is 1.25, compared to the Internet - Commerce industry's average PEG ratio of 1.04 [3] Industry Overview - The Internet - Commerce industry is part of the Retail-Wholesale sector and holds a Zacks Industry Rank of 68, placing it in the top 27% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups based on the average Zacks Rank of individual stocks, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]