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

Core Insights - The article emphasizes the importance of utilizing Zacks Premium for investors to enhance their stock market strategies and confidence in investing [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum characteristics, helping investors identify stocks likely to outperform the market in the short term [3][4] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [4] Value Score - The Value Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score focuses on a company's future prospects by analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook, indicating favorable times to invest in high-momentum stocks [6] VGM Score - The VGM Score combines the three Style Scores to identify stocks with the best value, growth, and momentum characteristics [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to help investors build successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [10][11] Company Spotlight: MercadoLibre - MercadoLibre, Inc. is a leading e-commerce platform in South America, dominating markets in Brazil, Argentina, and several other countries based on unique visitors and page views [12] - Currently rated 3 (Hold) by Zacks, MercadoLibre has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 14.4% over the past four weeks [12][13] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate rising by $1.61 to $46.26 per share, and an average earnings surprise of 16.4% [13]