In the latest trading session, MercadoLibre (MELI) closed at $1,945.55, marking a +0.6% move from the previous day. The stock outpaced the S&P 500's daily loss of 4.84%. Elsewhere, the Dow lost 3.98%, while the tech-heavy Nasdaq lost 5.97%.

Shares of the operator of an online marketplace and payments system in Latin America witnessed a loss of 8.46% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 5.85% and the S&P 500's loss of 4.7%.

Market participants will be closely following the financial results of MercadoLibre in its upcoming release. It is anticipated that the company will report an EPS of $7.82, marking a 15.34% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $5.5 billion, showing a 27% escalation compared to the year-ago quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $47.50 per share and a revenue of $25.89 billion, indicating changes of +26.03% and +24.59%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for MercadoLibre. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 1.09% rise in the Zacks Consensus EPS estimate. MercadoLibre is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, MercadoLibre currently has a Forward P/E ratio of 40.72. This expresses a premium compared to the average Forward P/E of 21.59 of its industry.

It is also worth noting that MELI currently has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.37.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 57, which puts it in the top 23% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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