MERCADOLIBRE INC (NASDAQ:MELI) – A Strong Contender for CANSLIM Investors

MERCADOLIBRE INC (NASDAQ:MELI) was identified by our CANSLIM stock screener as a high-growth candidate with strong fundamentals and technical momentum. The company, a leading e-commerce and fintech platform in Latin America, meets several key criteria of the CANSLIM strategy. Below, we examine why MELI stands out.

Why MELI Fits the CANSLIM Criteria

• C – Current Earnings & Sales Growth: MELI reported a 43.7% year-over-year EPS growth and 37% revenue growth in the latest quarter, well above the CANSLIM threshold of 20-25%.
• A – Annual Earnings Growth: The company’s 3-year EPS growth rate is an impressive 172.7%, far exceeding the 25% minimum requirement.
• N – New Highs & Innovation: MELI operates in high-growth sectors like digital payments and e-commerce, with consistent product expansion. The stock is trading near its 52-week high, reflecting strong market recognition.
• S – Supply & Demand: Institutional ownership stands at 84.8%, below the 85% threshold, indicating room for further institutional interest. The debt-to-equity ratio of 0.57 is manageable.
• L – Market Leadership: MELI has a relative strength score of 89.4, outperforming 89% of the market, a key trait for CANSLIM stocks.
• I – Institutional Sponsorship: While institutional ownership is high, it remains below the 85% ceiling, suggesting potential for continued institutional accumulation.
• M – Market Direction: The S&P 500 is in a positive trend, supporting a favorable environment for growth stocks like MELI.

Fundamental & Technical Strength

MELI’s fundamental analysis highlights outstanding profitability (ROE of 41.2%) and strong revenue growth. The technical analysis shows a bullish trend, with both short-term and long-term momentum positive.

For more CANSLIM-compliant stocks, explore our predefined CANSLIM screener.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.