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 CANSLIM growth screen, which makes it worth to investigate a bit more.

Why NASDAQ:MELI may be interesting for canslim investors.

• The earnings per share (EPS) of MERCADOLIBRE INC have shown positive growth on a quarter-to-quarter (Q2Q) basis, with a 288.0% increase. This reflects the company's ability to improve its profitability over time.
• With consistent quarter-to-quarter (Q2Q) revenue growth of 42.2%, 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 continued growth.
• Over the past 3 years, MERCADOLIBRE INC has demonstrated 173.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• MERCADOLIBRE INC demonstrates a strong Return on Equity(ROE) of 43.92%. This indicates the company's ability to generate favorable returns for shareholders and reflects its efficient utilization of capital. MERCADOLIBRE INC shows promising potential for continued success.
• MERCADOLIBRE INC has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 88.58 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. MERCADOLIBRE INC is well-positioned for potential price growth opportunities.
• With a Debt-to-Equity ratio at 0.66, MERCADOLIBRE INC showcases its prudent financial management. The company's balanced approach between debt and equity reflects its commitment to maintaining a stable capital structure.
• With institutional shareholders at 83.73%, MERCADOLIBRE INC demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.

Zooming in on the technicals.

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

Overall MELI gets a technical rating of 10 out of 10. Both in the recent history as in the last year, MELI has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, MELI did better than 88% of all other stocks. We also observe that the gains produced by MELI over the past year are nicely spread over this period.
• MELI is part of the Broadline Retail industry. There are 32 other stocks in this industry. MELI outperforms 74% of them.
• MELI is currently making a new 52 week high. This is a strong signal. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month MELI has a been trading in the 1787.26 - 2374.54 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up.
• Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.

For an up to date full technical analysis you can check the technical report of MELI

Fundamental analysis of NASDAQ:MELI

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.

MELI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 32 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making MELI a very profitable company, without any liquidiy or solvency issues. MELI shows excellent growth, but is valued quite expensive already. These ratings could make MELI a good candidate for growth and quality investing.

Our latest full fundamental report of MELI contains the most current fundamental analsysis.

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

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.