MercadoLibre shares surged 32.9% in the past year, strong investment opportunity.

From Nasdaq: 2025-03-21 12:36:00

MercadoLibre (MELI) shares have surged 32.9% in the past year, outperforming the Retail-Wholesale sector and Internet-Commerce industry. The company hit milestones in 2024, surpassing 100 million unique buyers and reaching 60 million fintech users for the first time.

To boost its presence in Mexico, MELI plans to invest $3.4 billion in 2025, up 38% from last year. This move aims to enhance technology, logistics, and fintech operations in its second-largest market. The investment is expected to drive higher transaction volumes and e-commerce penetration.

Despite competition from Amazon and Walmart in Latin America, MELI is investing in innovation and expanding free shipping for low-cost products. The company is also strengthening its advertising business to increase monetization and engagement. In the fintech sector, MELI has been performing well, with its credit portfolio expanding significantly in 2024.

Earnings estimates for MELI show an upward trend, with first-quarter 2025 earnings expected to grow by 15.34% year-over-year. The company has beaten earnings estimates in three of the last four quarters, with shares trading above moving averages, indicating a bullish signal.

MELI’s forward Price/Sales ratio is higher than the industry average, reflecting investor confidence in its growth potential. With strong investments in Mexico, strategies against competition, and a solid balance sheet, MELI offers a strong investment opportunity with a Zacks Rank #2 (Buy) and Growth Score of A.

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Read more at Nasdaq: MercadoLibre Soars 33% in a Year: Should Investors Buy the Stock Now?