Trade-Ideas: Mercadolibre (MELI) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
(
) as a post-market leader 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 $59.5 million.
- MELI is up 2.8% today from today's close.
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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 51. 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 516,300 shares per day over the past 30 days. Mercadolibre has a market cap of $4.5 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 9.70 days to cover. Shares are down 18.4% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Mercadolibre as a
. 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.
- You can view the full Mercadolibre Ratings Report.
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