Trade-Ideas LLC identified
) as a weak 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 $53.8 million.
- MELI has traded 203,842 shares today.
- MELI is trading at 6.55 times the normal volume for the stock at this time of day.
- MELI is trading at a new low 4.02% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of 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 (or avoid losses by trimming weak positions). 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.
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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 45. Currently there are 3 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 505,700 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 1.98 and a short float of 15.1% with 8.39 days to cover. Shares are down 10.3% year-to-date as of the close of trading on Thursday.
rates Mercadolibre as a
. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, notable return on equity, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 35.2% when compared to the same quarter one year prior, rising from $33.77 million to $45.64 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 21.7%. Since the same quarter one year prior, revenues rose by 14.0%. 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.
- MELI's debt-to-equity ratio of 0.82 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that MELI's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.59 is high and demonstrates strong liquidity.
- MERCADOLIBRE INC has improved earnings per share by 35.5% 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 ($2.61 versus $1.63).
- You can view the full Mercadolibre Ratings Report.