Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high 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 $56.4 million.
- MELI has traded 260,495 shares today.
- MELI is trading at a new lifetime high.
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More details on MELI:
MercadoLibre, Inc. hosts online commerce platforms in Latin America. Its services are designed to provide users with mechanisms for buying, selling, paying, collecting, generating leads, and comparing listings through e-commerce transactions. The stock currently has a dividend yield of 0.4%. MELI has a PE ratio of 55.6. Currently there are 2 analysts that rate Mercadolibre a buy, 1 analyst rates it a sell, and 3 rate it a hold.
The average volume for Mercadolibre has been 480,300 shares per day over the past 30 days. Mercadolibre has a market cap of $5.8 billion and is part of the services sector and retail industry. The stock has a beta of 2.07 and a short float of 17% with 12.94 days to cover. Shares are up 66.4% year to date as of the close of trading on Friday.
rates Mercadolibre as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 26.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MELI's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
- MERCADOLIBRE INC has improved earnings per share by 17.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MERCADOLIBRE INC increased its bottom line by earning $2.30 versus $1.73 in the prior year. This year, the market expects an improvement in earnings ($2.76 versus $2.30).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 49.74% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- The gross profit margin for MERCADOLIBRE INC is currently very high, coming in at 74.83%. Regardless of MELI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, MELI's net profit margin of 26.72% compares favorably to the industry average.
- You can view the full Mercadolibre Ratings Report.