Mercadolibre (MELI) Strong On High Relative Volume Today

Trade-Ideas LLC identified Mercadolibre (MELI) as a strong on high relative volume candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Mercadolibre

(

MELI

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Mercadolibre as such a stock due to the following factors:

  • MELI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $78.6 million.
  • MELI has traded 480,400 shares today.
  • MELI is trading at 30.58 times the normal volume for the stock at this time of day.
  • MELI is trading at a new high 13.03% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in MELI with the Ticky from Trade-Ideas. See the FREE profile for MELI NOW at Trade-Ideas

More details on MELI:

MercadoLibre, Inc. hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online e-commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. The stock currently has a dividend yield of 0.4%. MELI has a PE ratio of 52. Currently there are 2 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Mercadolibre has been 517,400 shares per day over the past 30 days. Mercadolibre has a market cap of $4.6 billion and is part of the services sector and retail industry. The stock has a beta of 2.03 and a short float of 17.8% with 8.08 days to cover. Shares are down 16.2% year-to-date as of the close of trading on Wednesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Mercadolibre as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.

Highlights from the ratings report include:

  • MELI's revenue growth has slightly outpaced the industry average of 13.7%. Since the same quarter one year prior, revenues rose by 17.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, MERCADOLIBRE INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • MERCADOLIBRE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MERCADOLIBRE INC reported lower earnings of $1.63 versus $2.66 in the prior year. This year, the market expects an improvement in earnings ($2.12 versus $1.63).
  • MELI has underperformed the S&P 500 Index, declining 16.28% from its price level of one year ago. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • Net operating cash flow has declined marginally to $58.65 million or 2.70% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, MERCADOLIBRE INC has marginally lower results.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Loading ...