Mercadolibre Stock Buy Hold or Sell Recommendation

MELI -  USA Stock  

USD 821.80  20.23  2.52%

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Mercadolibre is 'Strong Hold'. Macroaxis provides Mercadolibre buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MELI positions. The advice algorithm takes into account all of Mercadolibre's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Mercadolibre's buy-and-hold perspective. Additionally, see Mercadolibre Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Mercadolibre and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Mercadolibre.

Execute Mercadolibre Buy or Sell Advice

The Mercadolibre recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Mercadolibre. Macroaxis does not own or have any residual interests in Mercadolibre or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Mercadolibre's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell MercadolibreBuy Mercadolibre
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Hyperactively responds to market trendsDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Mercadolibre has a Risk Adjusted Performance of (0.08), Jensen Alpha of 0.1122, Total Risk Alpha of 0.347 and Treynor Ratio of (0.13)
Macroaxis provides trade recommendations on Mercadolibre to complement and cross-verify current analyst consensus on Mercadolibre. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Mercadolibre is not overpriced, please verify all Mercadolibre fundamentals, including its price to sales, debt to equity, beta, as well as the relationship between the net income and short ratio . Given that Mercadolibre has a price to earning of 503.78 X, we recommend you to check Mercadolibre market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Mercadolibre Trading Alerts and Improvement Suggestions

Mercadolibre has very high historical volatility over the last 90 days
Mercadolibre is unlikely to experience financial distress in the next 2 years
Over 84.0% of the company shares are owned by institutional investors
Latest headline from www.fool.com: The 1 E-Commerce Stock Thats Still Growing - The Motley Fool

Mercadolibre current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Mercadolibre analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Mercadolibre analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price2,041.61
Target Median Price2,036.10
Target High Price2,330.00
Recommendation Mean1.80
Number Of Analyst Opinions23
Target Low Price1,600.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Mercadolibre Returns Distribution Density

The distribution of Mercadolibre's historical returns is an attempt to chart the future uncertainty of Mercadolibre's future price movements. The chart of the probability distribution of Mercadolibre stock daily returns describes the distribution of returns around its average expected value. We use Mercadolibre price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Mercadolibre returns is essential to provide solid investment advice for Mercadolibre stock.
Mean Return-0.4Value At Risk-10.25
Potential Upside7.92Standard Deviation5.91
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Mercadolibre historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Mercadolibre Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(74.85 M)(97.56 M)(136.8 M)(246.77 M)(572.93 M)(588.01 M)
Depreciation Amortization and Accretion40.92 M45.79 M73.32 M104.99 M203.94 M220.04 M
Net Cash Flow or Change in Cash and Cash Equivalents154.12 M76.44 M986.73 M1.06 B1.14 B1.23 B
Net Cash Flow Business Acquisitions and Disposals(7.28 M)(35.8 M)(4.2 M)(6.94 M)(55.73 M)(57.19 M)
Issuance Repayment of Debt Securities(24.41 M)631.77 M58.67 M299.71 M894.46 M965.08 M
Payment of Dividends and Other Cash Distributions(20.97 M)(24.42 M)(26.5 M)(6.62 M)(5.96 M)(6.43 M)
Net Cash Flow from Financing(50.9 M)608.88 M2.02 B242.27 M1.92 B2.08 B
Net Cash Flow from Investing(22.64 M)(672.46 M)(1.45 B)(252.18 M)(1.6 B)(1.64 B)
Net Cash Flow Investment Acquisitions and Disposals88.04 M(570.51 M)(1.31 B)1.62 M(931.31 M)(955.82 M)
Net Cash Flow from Operations269.01 M230.91 M451.09 M1.18 B965.04 M1.04 B
Effect of Exchange Rate Changes on Cash(41.35 M)(90.89 M)(37.58 M)(115.84 M)(153.75 M)(157.8 M)

Mercadolibre Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Mercadolibre or Consumer Cyclical sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Mercadolibre stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Mercadolibre stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.11
β
Beta against DOW3.02
σ
Overall volatility
5.83
Ir
Information ratio -0.04

Mercadolibre Volatility Alert

Mercadolibre exhibits very low volatility with skewness of -0.16 and kurtosis of 0.16. However, we advise investors to further study Mercadolibre technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mercadolibre's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Mercadolibre's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Mercadolibre Implied Volatility

Mercadolibre's implied volatility exposes the market's sentiment of Mercadolibre stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Mercadolibre's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Mercadolibre stock will not fluctuate a lot when Mercadolibre's options are near their expiration.

Mercadolibre Fundamentals Vs Peers

Comparing Mercadolibre's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Mercadolibre's direct or indirect competition across all of the common fundamentals between Mercadolibre and the related equities. This way, we can detect undervalued stocks with similar characteristics as Mercadolibre or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Mercadolibre's fundamental indicators could also be used in its relative valuation, which is a method of valuing Mercadolibre by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Mercadolibre to competition
FundamentalsMercadolibrePeer Average
Return On Equity5.23 %(0.31) %
Return On Asset3.38 %(0.14) %
Profit Margin1.18 %(1.27) %
Operating Margin6.36 %(5.51) %
Current Valuation53.3 B16.62 B
Shares Outstanding50.46 M571.82 M
Shares Owned by Insiders8.14 %10.09 %
Shares Owned by Institutions83.75 %39.21 %
Number of Shares Shorted1.1 M4.71 M
Price to Earning503.78 X28.72 X
Price to Book319.77 X9.51 X
Price to Sales5.67 X11.42 X
Revenue7.07 B9.43 B
Gross Profit3.57 B27.38 B
EBITDA653.29 M3.9 B
Net Income83.3 M570.98 M
Cash and Equivalents2.79 B2.7 B
Cash per Share55.38 X5.01 X
Total Debt3.98 B5.32 B
Debt to Equity2.60 %48.70 %
Current Ratio1.40 X2.16 X
Book Value Per Share2.49 X1.93 K
Cash Flow from Operations965.04 M971.22 M
Short Ratio1.37 X4.00 X
Earnings Per Share1.58 X3.12 X
Price to Earnings To Growth19.99 X4.89 X
Number of Employees29.96 K18.84 K
Beta1.53-0.15
Market Capitalization40.11 B19.03 B
Total Asset1 B29.47 B
Retained Earnings352.1 M9.33 B
Working Capital222.7 M1.48 B
Current Asset545.17 M9.34 B
   Purchase by Marcelo Melamud of tradable shares of Mercadolibre [view details]

Mercadolibre Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Mercadolibre . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution51.62
Daily Balance Of Power6.95189
Rate Of Daily Change1.03
Day Median Price823.26
Day Typical Price822.77
Market Facilitation Index2.0E-4
Price Action Indicator8.66

About Mercadolibre Buy or Sell Advice

When is the right time to buy or sell Mercadolibre? Buying financial instruments such as Mercadolibre Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Mercadolibre investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Current Assets3.79 B5.35 B8.18 B8.82 B
Total Assets4.78 B6.53 B10.1 B10.9 B

Use Investing Ideas to Build Portfolios

In addition to having Mercadolibre in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Communication Thematic Idea Now

Communication
Communication Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Communication theme has 61 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Communication Theme or any other thematic opportunities.
View All  Next Launch Communication
Additionally, see Mercadolibre Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Mercadolibre information on this page should be used as a complementary analysis to other Mercadolibre's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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When running Mercadolibre price analysis, check to measure Mercadolibre's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Mercadolibre is operating at the current time. Most of Mercadolibre's value examination focuses on studying past and present price action to predict the probability of Mercadolibre's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Mercadolibre's price. Additionally, you may evaluate how the addition of Mercadolibre to your portfolios can decrease your overall portfolio volatility.
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Is Mercadolibre's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mercadolibre. If investors know Mercadolibre will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mercadolibre listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Mercadolibre is measured differently than its book value, which is the value of Mercadolibre that is recorded on the company's balance sheet. Investors also form their own opinion of Mercadolibre's value that differs from its market value or its book value, called intrinsic value, which is Mercadolibre's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mercadolibre's market value can be influenced by many factors that don't directly affect Mercadolibre's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mercadolibre's value and its price as these two are different measures arrived at by different means. Investors typically determine Mercadolibre value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mercadolibre's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.