Here's Why MercadoLibre (MELI) is a Strong Growth Stock

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 [2] - The Value Score identifies undervalued stocks using financial ratios like P/E and Price/Sales to find attractive investment opportunities [3] - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings to identify sustainable growth stocks [4] - The Momentum Score helps investors capitalize on price trends, utilizing metrics like weekly price changes and monthly earnings estimate changes [5] - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8] - Investors can choose from over 800 top-rated stocks, making the Style Scores essential for narrowing down selections [9] Investment Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering 3 (Hold) stocks with similar scores for potential upside [10] - Stocks with lower ranks (4 or 5) should be avoided, even if they have high Style Scores, due to the risk of declining earnings outlooks [11] Company Spotlight: MercadoLibre - MercadoLibre, Inc. is a leading e-commerce platform in South America, dominating markets in several countries based on unique visitors and page views [12] - Currently rated 3 (Hold) with a VGM Score of A, MercadoLibre is positioned as a strong candidate for growth investors, forecasting a year-over-year earnings growth of 20.3% for the current fiscal year [13] - The company has seen positive revisions in earnings estimates, with the Zacks Consensus Estimate increasing to $45.33 per share, alongside an average earnings surprise of 16.4% [13][14]