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

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] Zacks Style Scores - Zacks Style Scores are indicators that rate stocks based on value, growth, and momentum methodologies, helping investors identify stocks likely to outperform the market in the short term [2][3] - Stocks are rated from A to F, with A indicating the highest potential for outperformance [3] Value Score - The Value Score identifies attractive stocks using ratios like P/E, PEG, and Price/Sales, focusing on stocks that are undervalued [3] Growth Score - The Growth Score evaluates stocks based on projected and historical earnings, sales, and cash flow, targeting companies with sustainable growth [4] Momentum Score - The Momentum Score helps investors capitalize on price trends, using metrics like weekly price changes and monthly earnings estimate changes [5] VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating that highlights stocks with strong value, growth, and momentum characteristics [6] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to filter through these options effectively [8] Stock Example: MercadoLibre (MELI) - MercadoLibre is a leading e-commerce platform in South America, holding a 3 (Hold) Zacks Rank and a VGM Score of B [11] - The company has a Momentum Style Score of A, with shares increasing by 18.7% in the past four weeks, and an upward revision in earnings estimates for fiscal 2025 [12] - MELI's average earnings surprise stands at 22.6%, making it a noteworthy option for investors [12]