Is MERCADOLIBRE INC (NASDAQ:MELI) suited for growth investing?

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if MERCADOLIBRE INC (NASDAQ:MELI) is suited for growth investing. Investors should of course do their own research, but we spotted MERCADOLIBRE INC showing up in our CANSLIM growth screen, so it may be worth spending some more time on it.

Some of the canslim metrics of MELI highlighted

• The recent financial report of MELI demonstrates a 288.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• MELI has achieved significant quarter-to-quarter (Q2Q) revenue growth of 42.2%, signaling its ability to capture market opportunities and drive top-line expansion. This growth underscores the company's effective execution and its potential for continued success.
• MELI has achieved 173.0% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• In terms of Return on Equity(ROE), MELI is performing well, achieving a 43.92% ratio. This highlights the company's effective allocation of shareholder investments and signifies its commitment to maximizing returns.
• MELI has achieved an impressive Relative Strength (RS) rating of 90.91, showcasing its ability to outperform the broader market.
• A Debt/Equity ratio of 0.66 indicates that MELI is leveraging debt effectively without excessive risk.
• MELI demonstrates a balanced ownership structure, with institutional shareholders at 83.73%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.

What is the technical picture of MELI telling us.

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, MELI scores 3 out of 10 in our technical rating. Although MELI is scoring some points because its good overall performance in the market in the past year, recent evolutions are not that positive. Both the medium and short term picture give negative signs.

• When comparing the yearly performance of all stocks, we notice that MELI is one of the better performing stocks in the market, outperforming 90% of all stocks.
• MELI is one of the better performing stocks in the Broadline Retail industry, it outperforms 80% of 31 stocks in the same industry.
• The short term trend is negative, the long term trend is neutral. Not much exciting going on here.
• MELI is currently trading in the middle of its 52 week range, while the S&P500 Index is trading in the lower part of its yearly range. So MELI is doing better than the market!

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

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall MELI gets a fundamental rating of 7 out of 10. We evaluated MELI against 31 industry peers in the Broadline Retail industry. MELI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MELI is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make MELI suitable for growth and quality investing!

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

More ideas for growth investing can be found on ChartMill in our CANSLIM screen.

Disclaimer

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.