Stock investing
Search documents
Why MercadoLibre (MELI) is a Top Growth Stock for the Long-Term
ZACKS· 2025-03-13 14:45
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 characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score leverages trends in stock prices and earnings estimates to identify optimal times for investment [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9] - Stocks with lower ranks, such as 4 (Sell) or 5 (Strong Sell), may still have high Style Scores but are likely to experience declining earnings forecasts [10] Company Spotlight: MercadoLibre - MercadoLibre, Inc., based in Buenos Aires, is a leading e-commerce platform in South America, dominating markets in several countries including Brazil and Argentina based on unique visitors and page views [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it an attractive option for growth investors [11] - MercadoLibre is projected to achieve year-over-year earnings growth of 26% for the current fiscal year, with recent earnings estimates revised upward by six analysts [12] - The Zacks Consensus Estimate for MercadoLibre's earnings has increased by $3.74 to $47.50 per share, alongside an average earnings surprise of 16.4% [12]
Why Qualcomm (QCOM) is a Top Growth Stock for the Long-Term
ZACKS· 2025-02-26 15:45
Group 1 - The Zacks Style Scores provide a framework for rating stocks based on value, growth, and momentum characteristics, helping investors identify securities with high potential to outperform the market in the short term [2][3][10] - Stocks are rated from A to F, with A indicating the highest potential for outperformance, and the Style Scores are categorized into Value Score, Growth Score, Momentum Score, and VGM Score, which combines all three [3][4][6] - The Zacks Rank, a proprietary stock-rating model, leverages earnings estimate revisions to assist investors in building successful portfolios, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] Group 2 - Qualcomm (QCOM) is identified as a stock to watch, currently holding a 3 (Hold) rating on the Zacks Rank, with a VGM Score of A, indicating strong growth potential [12] - The company is forecasted to experience year-over-year earnings growth of 14.6% for the current fiscal year, supported by upward revisions from nine analysts in the last 60 days, raising the Zacks Consensus Estimate to $11.71 per share [12][13] - Qualcomm has an average earnings surprise of 7.8%, making it a compelling option for growth investors [13]