What Makes MercadoLibre (MELI) a Strong Momentum Stock: Buy Now?

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: MercadoLibre (MELI) - MELI currently holds a Momentum Style Score of B, indicating a positive momentum outlook [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Performance Metrics - Over the past week, MELI shares increased by 2.21%, outperforming the Zacks Internet - Commerce industry, which rose by 0.64% [5] - In a longer timeframe, MELI's shares have appreciated by 7.13% over the past month, compared to the industry's 1% [5] - Over the last quarter, MELI shares surged by 29.75%, and over the past year, they have gained 59.26%, while the S&P 500 only increased by 1.99% and 12.34%, respectively [6] Trading Volume - MELI's average 20-day trading volume is 312,518 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, 4 earnings estimates for MELI have been revised upwards, while only 2 were revised downwards, leading to an increase in the consensus estimate from $47.50 to $48.80 [9] - For the next fiscal year, 4 estimates have moved higher with no downward revisions, indicating a positive earnings outlook [9] Conclusion - Considering the positive performance metrics and earnings outlook, MELI is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]