Why MercadoLibre (MELI) is a Top Growth Stock for the Long-Term

Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence through daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score leverages trends in stock prices and earnings estimates to identify optimal times for investment [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9] - Stocks with lower ranks, such as 4 (Sell) or 5 (Strong Sell), may still have high Style Scores but are likely to experience declining earnings forecasts [10] Company Spotlight: MercadoLibre - MercadoLibre, Inc., based in Buenos Aires, is a leading e-commerce platform in South America, dominating markets in several countries including Brazil and Argentina based on unique visitors and page views [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it an attractive option for growth investors [11] - MercadoLibre is projected to achieve year-over-year earnings growth of 26% for the current fiscal year, with recent earnings estimates revised upward by six analysts [12] - The Zacks Consensus Estimate for MercadoLibre's earnings has increased by $3.74 to$47.50 per share, alongside an average earnings surprise of 16.4% [12]