Evaluating MERCADOLIBRE INC (NASDAQ:MELI) for Growth Investment Opportunities.

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 EPS of MELI has exhibited growth from one quarter to another (Q2Q), with a 288.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• The quarter-to-quarter (Q2Q) revenue growth of 42.2% of MELI 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.
• Over the past 3 years, MELI has demonstrated 173.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The Return on Equity(ROE) of MELI is 43.92%, which is a strong number. This indicates the company's ability to generate favorable returns for shareholders and reflects its effective management of resources.
• The Relative Strength (RS) of MELI has consistently been strong, with a current 94.0 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength.
• A Debt/Equity ratio of 0.66 highlights MELI's commitment to maintaining financial stability.
• MELI exhibits a favorable ownership structure, with an institutional shareholder ownership of 83.73%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

In-Depth Technical Analysis of MELI

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 10 out of 10 to MELI. 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.
• When comparing the yearly performance of all stocks, we notice that MELI is one of the better performing stocks in the market, outperforming 94% of all 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 31 other stocks in this industry. MELI outperforms 93% of them.
• MELI is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so MELI slightly outperforms the market at the moment.
• In the last month MELI has a been trading in the 1723.90 - 2295.89 range, which is quite wide. It is currently trading near the high of this range.
• 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

How does the complete fundamental picture look for MELI?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple 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. 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. With these ratings, MELI could be worth investigating further for growth and quality investing!.

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

More growth stocks can be found in our CANSLIM screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.