Are Dark Days Closing In On MercadoLibre Inc. (MELI)?

MercadoLibre Inc. (NASDAQ:MELI) closed the previous session at $533.01, down by -17.09 or -3.11% lower on its price over the last trading period. Shares of the company have traded -3.67% down in the last 5 days, with the price reaching as high as $552.32 since 11/18/19. The stock however has recovered +7.28% since hitting 5-day low of $495.95. The MELI stock is -4.90% lower than the $559.48 top value it marked over a period of month. MercadoLibre Inc. (NASDAQ:MELI) has a 52-week price range of $257.52- $698.98. The stock is 87.84% up year-to-date. Can MELI go on to record further gains or will the drop below $550.10 be witnessed again in coming days?

What do analysts say about the MercadoLibre Inc. (NASDAQ:MELI) stock in terms of estimates, with 19 ratings?. The analysts’ current recommendation for the stock is a Overweight, versus Overweight a month ago and a Overweight rating 3-month ago. The total number of analysts who have rated MELI as a buy is 13, with just 1 of 19 recommending it as a Sell. 19 analysts of the 0 rated it as underweight; while 5 advised Hold and a further 0 say the stock is Overweight.

Lets us now look at some key statistics for the company and see what they tell us about its books. MercadoLibre Inc. has a market valuation of $26.67 billion, with its Enterprise Value at $25.58 billion. The enterprise value (EV) is -4.26% off MercadoLibre Inc.’s market cap. Shares traded in the last session stood at 575363 while the average trading volume is 470.91K. Insiders own 12.97% of the shares institutions own 86.10% as outstanding shares currently stand at 48.48 million. When we look at the 20-day simple moving average, MELI is 2.43%, while that moves to -0.98% over its 50-day SMA and the SMA200 is -2.03%.

When we look at the consensus estimate for MELI shares, we find that Wall Street analysts have given the average target price of $656.88. The earnings estimate for the current quarter is -0.92, lower than the -0.66 expected for the next quarter. The stock has earnings per share estimate ranging between a low of -3.16 and a high of 0.05, with the coefficient variance at -93.33. For this fiscal year, the estimate climbs to 16.00 versus the 16.00 expected for the next year. MELI has current-year EPS range between a low of -5.65 and a high of 1.12, with the coefficient variance at -92.61.

The company’s trailing 12-month price-to-sales ratio is 13.01. In terms of profitability, the company has a profit margin of -5.90% and a trailing 12-month (ttm) operating margin of -4.20%. The company’s gross margin is 48.70%. MELI is one of the hottest stocks right now and that shows in its potential upside on returns with a -3.10% ROA for the last 12 months and a return on equity (ROE) of -7.10% over the same period.

For the fiscal quarter ending 12/30/2018, MercadoLibre Inc. had revenue of $657.89M. The earnings per share for the most recent quarter were -0.05. The EPS for the recent quarter beat consensus estimates by $0.08 per share after analysts had predicted -$0.13. EPS posted in 3 out of the last 4 quarters have beaten analysts’ estimates.

The investor community is excited about the MELI stock, with the Barchart 64% Sell showing that the stock could be headed for a massive downtrend. The stock’s 1-month chart already shows that the stock is 0.15% up and -8.83% lower in the last 3 months. Its 12-month performance is showing the stock trending higher by 63.30%. There might be a slight pullback as $555.16 is the first resistance point and if crossed $560.22 should come in play as the second resistance level. MELI could see support around 541.52 and will later test the 532.94 support.