Mercadolibre Stock Performance

MELI
 Stock
  

USD 659.95  23.08  3.62%   

The company secures a Beta (Market Risk) of 2.9121, which conveys a somewhat significant risk relative to the market. Let's try to break down what Mercadolibre's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Mercadolibre will likely underperform. Even though it is essential to pay attention to Mercadolibre price patterns, it is always good to be careful when utilizing equity historical price patterns. Our philosophy towards estimating any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Mercadolibre exposes twenty-one different technical indicators, which can help you to evaluate its performance. Mercadolibre has an expected return of -0.86%. Please be advised to verify Mercadolibre variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Mercadolibre performance from the past will be repeated at some point in the near future.
  
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Mercadolibre Performance
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Over the last 90 days Mercadolibre has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's essential indicators remain nearly stable which may send shares a bit higher in August 2022. The current disturbance may also be a sign of long-run up-swing for the company stockholders. ...more

Structure and Payout Changes

Dividend Date
2018-01-16
Ex Dividend Date
2017-12-28

Mercadolibre Price Channel

Quick Ratio0.75
Fifty Two Week Low600.68
Target High Price2,036.10
Fifty Two Week High1,970.13
Target Low Price850.00

Mercadolibre Relative Risk vs. Return Landscape

If you would invest  126,501  in Mercadolibre on April 3, 2022 and sell it today you would lose (60,506)  from holding Mercadolibre or give up 47.83% of portfolio value over 90 days. Mercadolibre is currently does not generate positive expected returns and assumes 5.752% risk (volatility on return distribution) over the 90 days horizon. In different words, 49% of stocks are less volatile than Mercadolibre, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon.
 Daily Expected Return (%) 
      Risk (%) 
Given the investment horizon of 90 days Mercadolibre is expected to under-perform the market. In addition to that, the company is 4.0 times more volatile than its market benchmark. It trades about -0.15 of its total potential returns per unit of risk. The DOW is currently generating roughly -0.12 per unit of volatility.

Mercadolibre Market Risk Analysis

Today, many novice investors tend to focus exclusively on investment returns with little concern for Mercadolibre's investment risk. Standard deviation is the most common way to measure market volatility of stocks, such as Mercadolibre, and traders can use it to determine the average amount a Mercadolibre's price has deviated from the expected return over a period of time. It is calculated by determining the expected price for the established period and then subtracting this figure from each price point. The differences are then squared, summed, and averaged to produce the variance.

Sharpe Ratio = -0.1496

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Negative ReturnsMELI
Estimated Market Risk
 5.75
  actual daily
 
 49 %
of total potential
 
4949
Expected Return
 -0.86
  actual daily
 
 0 %
of total potential
 
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Risk-Adjusted Return
 -0.15
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 0 %
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Based on monthly moving average Mercadolibre is performing at about 0% of its full potential. If added to a well diversified portfolio the total return can be enhanced and market risk can be reduced. You can increase risk-adjusted return of Mercadolibre by adding it to a well-diversified portfolio.

About Mercadolibre Performance

To evaluate Mercadolibre Stock as a possible investment, you need to clearly understand its upside potential, downside risk, and overall future performance outlook. You may be satisfied when Mercadolibre generates a 15% return over the last few months, but what if the market is generating 25% over the same period? In this case, it makes sense to compare Mercadolibre Stock's performance with different market indexes, such as the Dow or NASDAQ Composite. These indexes can act as benchmarks that will help you to understand Mercadolibre stock market performance in a much more refined way. At Macroaxis, we take it even further. The Macroaxis performance score is an integer between 0 and 100 that represents Mercadolibre's market performance from a risk-adjusted return perspective. Generally speaking, the higher the score, the better is overall performance as compared to other investors. The score is normalized against the average investing universe (the best we can interpret from the data available). Within this methodology, scores of individual equity instruments will always be inferior to the scores of portfolios of equities as portfolios typically diversify a lot of unsystematic risks away. The formula to derive the Macroaxis score bases on multiple unequally-weighted factors. For more information, refer to our portfolio performance evaluation section.
Please also refer to our technical analysis and fundamental analysis pages.
Last ReportedProjected for 2022
Effect of Exchange Rate Changes on Cash-153.8 M-157.8 M
Return on Investment 10.87  11.15 
Return on Average Assets 0.0108  0.0111 
Return on Average Equity 0.18  0.18 
Return on Invested Capital 0.12  0.12 
Return on Sales 0.07  0.07 
MercadoLibre, Inc. operates online commerce platforms in Latin America. MercadoLibre, Inc. was incorporated in 1999 and is headquartered in Montevideo, Uruguay. Mercadolibre operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 29957 people.

Things to note about Mercadolibre

Checking the ongoing alerts about Mercadolibre for important developments is a great way to find new opportunities for your next move. Our stock alerts and notifications screener for Mercadolibre help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.

Mercadolibre Alerts

Equity Alerts and Improvement Suggestions

Mercadolibre generated a negative expected return over the last 90 days
Mercadolibre has high historical volatility and very poor performance
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 seekingalpha.com: MercadoLibre Stock Value, Growth And Outstanding Execution - Seeking Alpha
Additionally, see Stocks Correlation. 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.

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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.
Quarterly Earnings Growth YOY
5.86
Market Capitalization
32.1 B
Quarterly Revenue Growth YOY
0.63
Return On Assets
0.0383
Return On Equity
0.23
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.