27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
MercadoLibre (NASDAQ:MELI) has been analyzed by 10 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 8 | 0 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 2 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 3 | 0 | 0 | 0 |
| 3M Ago | 0 | 3 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $1949.0, with a high estimate of $2150.00 and a low estimate of $1800.00. Surpassing the previous average price target of $1930.00, the current average has increased by 0.98%.
Understanding Analyst Ratings: A Comprehensive Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive MercadoLibre. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Scott Devitt | Wedbush | Lowers | Outperform | $1800.00 | $2000.00 |
| Kaio Prato | UBS | Lowers | Buy | $1800.00 | $1900.00 |
| Trevor Young | Barclays | Lowers | Overweight | $1800.00 | $2000.00 |
| Tobias Stingelin | Citigroup | Raises | Buy | $1940.00 | $1990.00 |
| Scott Devitt | Wedbush | Maintains | Outperform | $2000.00 | - |
| Scott Devitt | Wedbush | Maintains | Outperform | $2000.00 | - |
| Marcelo Santos | JP Morgan | Raises | Overweight | $2150.00 | $2000.00 |
| Trevor Young | Barclays | Raises | Overweight | $2000.00 | $1900.00 |
| James Friedman | Susquehanna | Raises | Positive | $2000.00 | $1850.00 |
| Scott Devitt | Wedbush | Raises | Outperform | $2000.00 | $1800.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to MercadoLibre. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of MercadoLibre compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of MercadoLibre's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on MercadoLibre analyst ratings.
Discovering MercadoLibre: A Closer Look
MercadoLibre runs the largest e-commerce marketplace in Latin America, with more than 218 million active users and 1 million active sellers across 18 countries stitching into its commerce network or fintech solutions as of the end of 2023. The company operates a host of complementary businesses to its core online shop, with shipping solutions (Mercado Envios), a payment and financing operation (Mercado Pago and Mercado Credito), advertisements (Mercado Clics), classifieds, and a turnkey e-commerce solution (Mercado Shops) rounding out its arsenal. MercadoLibre generates revenue from final value fees, advertising royalties, payment processing, insertion fees, subscription fees, and interest income from consumer and small-business lending.
MercadoLibre's Economic Impact: An Analysis
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: MercadoLibre displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 41.94%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: MercadoLibre's net margin excels beyond industry benchmarks, reaching 3.87%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): MercadoLibre's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.68% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.98%, the company showcases effective utilization of assets.
Debt Management: MercadoLibre's debt-to-equity ratio is below the industry average at 1.74, reflecting a lower dependency on debt financing and a more conservative financial approach.
What Are Analyst Ratings?
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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