Is there a further upside to the stock?
MercadoLibre’s shares rose 5.7% during the last trading session, closing at $1.082.92. This can be attributed to the notable volume, which saw more shares traded than usual. This is compared to the stock’s 22.7% increase over the past four week.
MercadoLibre has extended its rally due to its strength in commerce and fintech. Robust product offerings and credit portfolio expansion are respectively driving the company’s commerce and fintech revenues. This in turn, is aiding MercadoLibre in winning investors’ confidence.
In its next report, this operator of a Latin American online marketplace and payment system is expected to post quarterly earnings at $2.11 per share. This represents a year-overyear increase of +329.4%. Revenues are expected at $2.94 Billion, an increase of 38.1% over the previous quarter.
Earnings and revenue growth expectations are crucial in evaluating the strength of a stock. However, empirical research has shown a strong correlation between earnings estimate revision trends and stock price movements in the near-term.
MercadoLibre has revised the consensus EPS estimate for quarter to the current level 9.7% more in the past 30 days. A positive trend in earnings estimates revisions usually leads to price appreciation. Keep an eye on MELI moving forward to see if the recent jump could lead to more strength.
The stock currently holds a Zacks Rating #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
MercadoLibre is a Zacks Internet – Commerce member. 1stdibs.com, another stock from the same industry, finished the last trading session 2.6% lower at $5.93. DIBS returned 12.2% during the past month.
1stdibs has maintained its consensus estimate of EPS for the upcoming report at -$0.22. This is a change in -4.8% compared to the company’s previous year-ago earnings per share. 1stdibs is currently ranked #2 on Zacks (Buy).
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
1stdibs.com, Inc. (DIBS) : Free Stock Analysis Report