Why This 1 Momentum Stock Could Be a Great Addition to Your Portfolio
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Is This 1 Momentum Stock a Screaming Buy Right Now?
For momentum investors, upward or downward trends in a stock's price or earnings outlook take precedent, so they'll want to zero in on the Momentum Style Score. This Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
MercadoLibre (MELI)
Buenos Aires, Argentina based MercadoLibre, Inc. is one of the largest e-commerce platforms in South America. The company is a market leader in e-commerce in Brazil, Argentina, Colombia, Chile, Ecuador, Costa Rica, Peru, Mexico, and Uruguay based on unique visitors and page views.
MELI boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of MercadoLibre has seen some interesting price action recently; the stock is down 2.3% over the past one week and up 10.9% over the past four weeks. And in the last one-year period, MELI has gained 49.7%. As for the stock's trading volume, 376,217.66 shares on average were traded over the last 20 days.
Momentum investors also pay close attention to a company's earnings. For MELI, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.22 to $48.72 per share for 2025. MELI boasts an average earnings surprise of 22.6%.
MELI should be on investors' short list because of its impressive earnings fundamentals, a good Zacks Rank, and strong Momentum and VGM Style Scores.
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MercadoLibre, Inc. (MELI) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).