Why NASDAQ:MELI qualifies as a high growth stock.

In this article we will dive into MERCADOLIBRE INC (NASDAQ:MELI) as a possible candidate for growth investing. Investors should always do their own research, but we noticed MERCADOLIBRE INC showing up in our Louis Navellier growth screen, which makes it worth to investigate a bit more.

What matters for growth investors.

• The Return on Equity(ROE) of MERCADOLIBRE INC is 33.61%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• MERCADOLIBRE INC has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• With notable 1-year revenue growth of 37.48%, MERCADOLIBRE INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• The quarter-to-quarter (Q2Q) revenue growth of 31.5% of MERCADOLIBRE INC has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• With a favorable trend in its operating margin over the past year, MERCADOLIBRE INC demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With positive growth in its free cash flow (FCF) over the past year, MERCADOLIBRE INC showcases its ability to generate strong cash flows and maintain a solid financial position. This growth reflects the company's efficient utilization of capital and its commitment to long-term value creation.
• The EPS of MERCADOLIBRE INC has exhibited growth from one quarter to another (Q2Q), with a 112.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• The average next Quarter EPS Estimate for MERCADOLIBRE INC has experienced a 17.43% change in the last 3 months, reflecting evolving expectations by analysts regarding the company's EPS performance.
• The quarterly earnings of MERCADOLIBRE INC have shown a 112.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
• The earnings per share (EPS) growth of MERCADOLIBRE INC are accelerating: the current Q2Q growth of 112.0% is above the previous year Q2Q growth of 77.37%. Earnings momentum and acceleration are key for high growth systems.

Fundamental Analysis Observations

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 7 out of 10 to MELI. MELI was compared to 34 industry peers in the Broadline Retail industry. While MELI belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MELI is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, MELI could be worth investigating further for growth investing!.

Check the latest full fundamental report of MELI for a complete fundamental analysis.

Our Lois Navellier screen will find you more ideas suited for growth investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.