Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Is MELI a good stock to buy? We came across a bullish thesis on MercadoLibre, Inc. on The Analyst's Journal's Substack by RA_Capital. In this article, we will summarize the bulls' thesis on MELI. MercadoLibre, Inc.'s share was trading at $1,610.00 as of June 11th. MELI's trailing and forward P/E were 41.92 and 30.86 respectively according to Yahoo Finance.Alliance Global Maintains Buy Rating and $13 PT on Rezolve (RZLV)

Photo by CardMapr.nl on Unsplash

MercadoLibre, Inc. (MELI) is positioned as the dominant digital commerce and fintech ecosystem in Latin America, combining leading e-commerce, payments, lending, logistics, and advertising platforms that continue to reinforce one another. Despite the stock trading at $1,599.52, approximately 39.5% below its July 2025 all-time high, the company delivered exceptional operating results that support a bullish long-term outlook.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

Revenue increased 44.6% year-over-year to $8.8 billion in the fourth quarter of 2025, while full-year revenue reached $28.89 billion, up 39%, marking an impressive streak of 28 consecutive quarters with growth exceeding 30%. The company's fintech platform, Mercado Pago, remains a major growth engine, with its credit portfolio nearly doubling year-over-year to $12.5 billion, monthly active users expanding around 30% for ten consecutive quarters, and three million new credit cards issued during the quarter.

Commerce momentum also remains strong, supported by 120 million annual active buyers and 492 million items sold in the quarter, while Brazil and Mexico both delivered 35% GMV growth. MercadoLibre continues to strengthen its competitive advantages through significant investments in logistics, technology, and artificial intelligence, with AI-powered advertising revenue growing 67% year-over-year and AI handling 87% of Mercado Pago customer interactions.

Although the market reacted negatively to earnings due to operating margin compression, management intentionally sacrificed near-term profitability to accelerate market share gains through free shipping, credit expansion, cross-border trade, and first-party commerce initiatives.

With dominant market positions across Brazil, Argentina, and Mexico, a logistics network significantly faster than competitors, and more than $14 billion planned for investment in 2026, MercadoLibre appears well positioned to benefit from Latin America's ongoing digitalization. The thesis suggests a potential valuation of $2,400 to $2,730 per share, implying approximately 50% to 71% upside from current levels.

Story Continues

Previously, we covered a bullish thesis on MercadoLibre, Inc. (MELI) by Daan | InvestInsights in May 2025, which highlighted the company's leadership in Latin American e-commerce and fintech, expanding digital adoption, strong user growth, and long-term growth potential. MELI's stock price has depreciated by approximately 37.71% since our coverage. RA_Capital shares a similar view but emphasizes on accelerating fintech expansion, AI-driven growth, strategic market share investments, and significant upside from current levels.

MercadoLibre, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 102 hedge fund portfolios held MELI at the end of the first quarter which was 113 in the previous quarter. While we acknowledge the risk and potential of MELI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MELI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about MercadoLibre (MELI).

MercadoLibre currently has an average brokerage recommendation (ABR) of 1.66, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms. An ABR of 1.66 approximates between Strong Buy and Buy.

Of the 19 recommendations that derive the current ABR, 13 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 68.4% and 5.3% of all recommendations.

Brokerage Recommendation Trends for MELIBroker Rating Breakdown Chart for MELI

Check price target & stock forecast for MercadoLibre here>>>

While the ABR calls for buying MercadoLibre, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks Rank

In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Story Continues

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Should You Invest in MELI?

In terms of earnings estimate revisions for MercadoLibre, the Zacks Consensus Estimate for the current year has declined 3.7% over the past month to $40.97.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for MercadoLibre. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for MercadoLibre with a grain of salt.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Over the last 7 days, the United States market has experienced a 4.1% drop, yet it remains up by 21% over the past year with anticipated earnings growth of 18% per annum in the coming years. In this fluctuating environment, identifying stocks that may be priced below their estimated value can offer potential opportunities for investors seeking to capitalize on market inefficiencies.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name Current Price Fair Value (Est) Discount (Est) Western Digital (WDC) $490.09 $963.12 49.1% Solstice Advanced Materials (SOLS) $77.69 $154.41 49.7% Rayonier (RYN) $20.69 $40.79 49.3% MercadoLibre (MELI) $1588.29 $3090.91 48.6% Live Oak Bancshares (LOB) $38.21 $74.21 48.5% Kingstone Companies (KINS) $15.84 $31.31 49.4% Gold Royalty (GROY) $2.70 $5.32 49.2% Bowhead Specialty Holdings (BOW) $27.08 $52.60 48.5% Alkami Technology (ALKT) $15.01 $29.64 49.4% AbbVie (ABBV) $224.95 $440.96 49%

Click here to see the full list of 139 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's review some notable picks from our screened stocks.

First Community

Overview: First Community Corporation, with a market cap of $298.10 million, operates as the bank holding company for First Community Bank, offering a range of commercial and retail banking products and services to small-to-medium sized businesses, professionals, and individuals.

Operations: The company generates revenue through several segments, including Commercial and Retail Banking ($65.40 million), Mortgage Banking ($9.49 million), Investment Advisory and Non-Deposit services ($8.03 million), and the Corporate Segment ($6.81 million).

Estimated Discount To Fair Value: 35.1%

First Community Corporation appears undervalued, trading at 35.1% below its estimated fair value and over 20% below its future cash flow value. The company reported net interest income of US$18.37 million for Q1 2026, with net income rising to US$5.5 million from the previous year. Despite recent shareholder dilution, earnings are forecast to grow significantly at over 20% annually, supported by a share repurchase program worth up to US$7.5 million expiring in May 2027.

According our earnings growth report, there's an indication that First Community might be ready to expand. Click to explore a detailed breakdown of our findings in First Community's balance sheet health report.FCCO Discounted Cash Flow as at Jun 2026

Chemung Financial

Overview: Chemung Financial Corporation is a bank holding company for Chemung Canal Trust Company, offering various banking, financing, fiduciary, and financial services with a market cap of $344.47 million.

Story Continues

Operations: The company's revenue segments include Core Banking at $84.59 million and Wealth Management Group (WMG) at $12.22 million, with adjustments from Holding Company and Cfs Group, Inc. (CFS) accounting for -$1.44 million.

Estimated Discount To Fair Value: 27.6%

Chemung Financial is trading at US$72.23, below its estimated future cash flow value of US$99.77, suggesting undervaluation. Earnings are projected to grow significantly at 35% annually, outpacing the broader US market's growth forecast. Despite insider selling and moderate revenue growth expectations of 17.6%, recent earnings reports show strong performance with net income rising to US$9.2 million for Q1 2026 from the previous year’s US$6.02 million, supporting its investment appeal based on cash flows.

Our growth report here indicates Chemung Financial may be poised for an improving outlook. Delve into the full analysis health report here for a deeper understanding of Chemung Financial.CHMG Discounted Cash Flow as at Jun 2026

Consolidated Water

Overview: Consolidated Water Co. Ltd., operating through its subsidiaries, supplies potable water, treats wastewater, and offers water-related products and services across the Cayman Islands, the Bahamas, the United States, and the British Virgin Islands with a market cap of $482.57 million.

Operations: Consolidated Water's revenue segments are comprised of Bulk ($33.81 million), Retail ($32.75 million), Manufacturing ($14.28 million), and Services Excluding Manufacturing ($47.49 million).

Estimated Discount To Fair Value: 17.5%

Consolidated Water, priced at US$30.09, trades below its estimated future cash flow value of US$36.48, indicating potential undervaluation based on cash flows. While earnings grew 10.4% last year and are forecast to grow 19.9% annually, revenue is expected to rise 24.5%, surpassing market averages. Recent strategic hires and expansion plans in desalination and water infrastructure signal growth opportunities despite a slight decline in Q1 earnings compared to the previous year.

The analysis detailed in our Consolidated Water growth report hints at robust future financial performance. Take a closer look at Consolidated Water's balance sheet health here in our report.CWCO Discounted Cash Flow as at Jun 2026

Where To Now?

Discover the full array of 139 Undervalued US Stocks Based On Cash Flows right here. Already own these companies? Link your portfolio to Simply Wall St and get alerts on any new warning signs to your stocks. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide.

Ready To Venture Into Other Investment Styles?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FCCOCHMG and CWCO.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Over the last 7 days, the United States market has experienced a 4.1% drop, although it remains up by 21% over the past year with earnings forecasted to grow by 18% annually. In such fluctuating conditions, identifying stocks that might be undervalued based on current market estimates can present opportunities for investors seeking potential growth at a reasonable price.

Top 10 Undervalued Stocks Based On Cash Flows In The United States

Name Current Price Fair Value (Est) Discount (Est) Western Digital (WDC) $490.09 $963.12 49.1% Solstice Advanced Materials (SOLS) $77.69 $154.41 49.7% Rayonier (RYN) $20.69 $40.79 49.3% MercadoLibre (MELI) $1588.29 $3090.91 48.6% Live Oak Bancshares (LOB) $38.21 $74.21 48.5% Kingstone Companies (KINS) $15.84 $31.31 49.4% Gold Royalty (GROY) $2.70 $5.32 49.2% Bowhead Specialty Holdings (BOW) $27.08 $52.60 48.5% Alkami Technology (ALKT) $15.01 $29.64 49.4% AbbVie (ABBV) $224.95 $440.96 49%

Click here to see the full list of 139 stocks from our Undervalued US Stocks Based On Cash Flows screener.

Let's explore several standout options from the results in the screener.

Mission Produce

Overview: Mission Produce, Inc. is involved in the sourcing, farming, packaging, marketing, and distribution of avocados, mangoes, and blueberries to food retailers, wholesalers, and foodservice customers both in the United States and internationally with a market cap of approximately $960.04 million.

Operations: The company's revenue is primarily derived from its Marketing & Distribution segment at $1.13 billion, followed by International Farming at $126.90 million, and Blueberries contributing $92.80 million.

Estimated Discount To Fair Value: 25.9%

Mission Produce is trading at US$11.24, below its estimated future cash flow value of US$15.17, suggesting it might be undervalued based on cash flows. Despite recent net losses and reduced profit margins, analysts forecast significant annual earnings growth of 82.3% over the next three years, outpacing the broader market's expected growth rate. The company has initiated a share repurchase program worth up to US$100 million, indicating confidence in its intrinsic value despite current challenges.

Insights from our recent growth report point to a promising forecast for Mission Produce's business outlook. Unlock comprehensive insights into our analysis of Mission Produce stock in this financial health report.AVO Discounted Cash Flow as at Jun 2026

OceanFirst Financial

Overview: OceanFirst Financial Corp. is the bank holding company for OceanFirst Bank N.A., with a market cap of $1.04 billion.

Operations: OceanFirst Bank N.A. generates revenue primarily through its Community Banking Services segment, which accounted for $396.65 million.

Story Continues

Estimated Discount To Fair Value: 38.4%

OceanFirst Financial, trading at US$18.29, is undervalued relative to its estimated future cash flow value of US$29.71 and offers a reliable 4.37% dividend yield. The company's earnings are forecast to grow significantly at 55.5% annually, outpacing the broader U.S. market's growth expectations. Recent merger with Flushing Financial Corporation expands its board and strategic capabilities, while shelf registrations indicate plans for capital raising amidst robust revenue growth projections of 35% per year.

Upon reviewing our latest growth report, OceanFirst Financial's projected financial performance appears quite optimistic. Take a closer look at OceanFirst Financial's balance sheet health here in our report.OCFC Discounted Cash Flow as at Jun 2026

On Holding

Overview: On Holding AG, with a market cap of $12.66 billion, develops and distributes performance sports products under the On brand across Switzerland, Europe, the Middle East, Africa, the United States, the Americas, and Asia-Pacific.

Operations: The company's revenue primarily comes from its Athletic Footwear segment, which generated CHF 3.12 billion.

Estimated Discount To Fair Value: 28.9%

On Holding, trading at US$38, is undervalued compared to its estimated future cash flow value of US$53.47. Earnings are projected to grow significantly at 23.2% annually, surpassing the U.S. market's expectations. Recent guidance indicates net sales growth of at least 23% year-over-year in constant currency terms for 2026, with reported net sales expected to reach CHF 3.51 billion. Leadership changes aim to enhance strategic execution as co-founders assume Co-CEO roles for global expansion.

Our growth report here indicates On Holding may be poised for an improving outlook. Dive into the specifics of On Holding here with our thorough financial health report.ONON Discounted Cash Flow as at Jun 2026

Where To Now?

Click this link to deep-dive into the 139 companies within our Undervalued US Stocks Based On Cash Flows screener. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Enhance your investing ability with the Simply Wall St app and enjoy free access to essential market intelligence spanning every continent.

Searching for a Fresh Perspective?

Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AVOOCFC and ONON.

This article was originally published by Simply Wall St.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

3 Internet Stocks on Our Buy List

Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. This influence cuts both ways though because they have high exposure to the ups and downs of consumer spending, and the market seems to believe the tide is turning in the wrong direction - over the past six months, the industry has tumbled by 19.3%. This performance is a noticeable divergence from the S&P 500's 7.5% return.

The elite companies can churn out earnings growth under any circumstance, however, and our mission at StockStory is to help you find them. Taking that into account, here are three internet stocks boasting durable advantages.

Snap (SNAP)

Market Cap: $9.26 billion

Founded by Stanford University students Evan Spiegel, Reggie Brown, and Bobby Murphy, and originally called Picaboo, Snapchat (NYSE: SNAP) is an image centric social media network.

Why Are We Bullish on SNAP?

Disciplined cost controls and effective management resulted in a strong two-year EBITDA margin of 11.9%, and its rise over the last few years was fueled by some leverage on its fixed costs Incremental sales significantly boosted profitability as its annual earnings per share growth of 24.5% over the last three years outstripped its revenue performance Free cash flow margin expanded by 8.8 percentage points over the last few years, providing additional flexibility for investments and share buybacks/dividends

Snap's stock price of $5.54 implies a valuation ratio of 8.2x forward EV/EBITDA. Is now the time to initiate a position? Find out in our full research report, it's free.

Remitly (RELY)

Market Cap: $3.87 billion

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ:RELY) is an online platform that enables consumers to safely and quickly send money globally.

Why Do We Love RELY?

Active Customers have grown by 28.4% annually, allowing for more profitable cross-selling opportunities if it can build complementary products and features Incremental sales over the last three years have been highly profitable as its earnings per share increased by 247% annually, topping its revenue gains Free cash flow margin increased by 35.2 percentage points over the last few years, giving the company more capital to invest or return to shareholders

At $18.60 per share, Remitly trades at 8.6x forward EV/EBITDA. Is now a good time to buy? See for yourself in our comprehensive research report, it's free.

MercadoLibre (MELI)

Market Cap: $83.2 billion

Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.

Story Continues

Why Will MELI Outperform?

Customer spending is rising as the company has focused on monetization over the last two years, leading to 77.7% annual growth in its average revenue per user Share buybacks catapulted its annual earnings per share growth to 45.9%, which outperformed its revenue gains over the last three years MELI is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its growing cash flow gives it even more resources to deploy

MercadoLibre is trading at $1,635 per share, or 18.1x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free.

Stocks We Like Even More

ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies.

Our AI system flagged Palantir before it ran 1,662%. AppLovin before it ran 753%. Nvidia before it ran 1,178%. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE.

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

MercadoLibre's MELI aggressive credit card scaling strategy is putting Mercado Pago's unit economics under increasing strain. The structural mechanics of credit card provisioning are compressing net interest margin after losses at a pace that warrants serious attention. NIMAL declined 500 basis points to 17.8% in the first quarter of 2026; the drivers of this compression are not transitory.

The key catalyst is Mercado Pago's portfolio mix. Credit cards represent 37% of the total credit book and unlike consumer or merchant loans, every card issued requires upfront provisioning against the full expected loss before a single interest payment is collected. With the credit book expanding at 87% year over year, nearly double the company's overall revenue growth rate of 49%, the volume of loss provisions being front-loaded into the income statement is growing at a pace that structurally depresses NIMAL each quarter. Compounding this, loan durations in Brazil have been extended from five months to eight months, amplifying provisions per loan and increasing early repayment risk.

Expansion into Mexico and Argentina threatens to extend this pressure materially. Mercado Pago is accelerating card issuance in Mexico, while Argentina, where the product launched in mid-2025, carries entirely unseasoned cohorts. Argentina's financial system is contending with rising industry-wide delinquencies and persistent inflation, elevating repayment stress precisely when Mercado Pago is scaling fastest. Each new market resets the provisioning clock, meaning relief from maturing Brazilian cohorts could be continuously offset by fresh drag from newer geographies.

The Zacks Consensus Estimate for MELI's 2026 fintech revenues is pegged at $18.11 billion, suggesting a 43.75% year over year growth. With no near-term moderation in card issuance signaled and two expansion markets still in early provisioning-heavy stages, NIMAL pressure appears more structural than cyclical, and a meaningful recovery is unlikely to materialize until Mercado Pago's cohorts in Mexico and Argentina reach sufficient maturity.

MELI Faces Stiff Competition

MELI faces stiff competition from peers managing rapid credit expansion with greater margin discipline. Nu Holdings NU has scaled its credit portfolio aggressively while sustaining profitability, proving that credit growth and bottom-line delivery can coexist. Sea Limited SE, through its Monee arm, has expanded its loan book at a comparable pace while maintaining low late-stage delinquency across multiple markets.

Sea Limited demonstrates that multi-market credit diversification need not compromise asset quality. Nu Holdings is particularly instructive given its overlapping Latin American presence and more contained margin erosion. Against this backdrop, MercadoLibre's NIMAL compression looks more acute than either Sea Limited or Nu Holdings.

Story Continues

MELI’s Share Price Performance, Valuation and Estimates

MELI shares have declined 18.5% in the year-to-date (YTD) period, while the Zacks Internet–Commerce industry has plunged 1.4%.

MELI’s YTD Price PerformanceZacks Investment Research

Image Source: Zacks Investment Research

From a valuation standpoint, MELI stock is currently trading at a forward 12-month Price/Sales ratio of 1.85X compared with the  Retail-Wholesale sector’s 1.48X. MELI has a Value Score of C.

MELI's ValuationZacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MELI’s 2026 earnings is pegged at $40.97 per share, down by 6.12% over the past 30 days, but indicating a 3.98% year-over-year increase.

MercadoLibre, Inc. Price and ConsensusMercadoLibre, Inc. Price and Consensus

MercadoLibre, Inc. price-consensus-chart | MercadoLibre, Inc. Quote

MercadoLibre stock currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Nu Holdings Ltd. (NU) : Free Stock Analysis Report

Sea Limited Sponsored ADR (SE) : Free Stock Analysis Report

MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE.

If you are wondering whether MercadoLibre's current share price still reflects its long term potential or if expectations have run ahead of reality, it helps to start with a clear look at value. The stock last closed at US$1,641.16, with the share price down 1.9% over the past week, roughly flat over the last month, down 16.8% year to date, and down 31.5% over the past year, while still sitting above its level from three years ago. Recent headlines have continued to focus on MercadoLibre's position as a major e commerce and fintech platform across Latin America, alongside industry wide discussions about regulation, competition, and consumer demand in digital payments and online retail. Together, these themes help frame how investors think about the recent share price moves and what might be priced into the stock today. On Simply Wall St's valuation checks, MercadoLibre scores 3 out of 6 for being assessed as undervalued. The next step is to look at how different valuation methods line up on the stock today and then finish with a framework that can help you judge value more effectively for yourself.

Find out why MercadoLibre's -31.5% return over the last year is lagging behind its peers.

Approach 1: MercadoLibre Discounted Cash Flow (DCF) Analysis

A Discounted Cash Flow, or DCF, model takes estimates of a company's future cash flows and discounts them back to today using a required rate of return, giving an estimate of what the entire business could be worth in today's dollars.

For MercadoLibre, Simply Wall St applies a 2 Stage Free Cash Flow to Equity model using cash flow projections. The latest twelve month free cash flow is about $11.9b. Analysts provide explicit forecasts for the next few years, and beyond that Simply Wall St extrapolates the company's cash flows, with projected free cash flow of $16.98b in 2035, all expressed in $.

Based on these cash flow projections and the discounting applied, the model produces an estimated intrinsic value of about $3,085.92 per share. Compared with the recent share price of $1,641.16, this implies the stock is assessed as 46.8% undervalued on this DCF view.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests MercadoLibre is undervalued by 46.8%. Track this in your watchlist or portfolio, or discover 46 more high quality undervalued stocks.

Story Continues

MELI Discounted Cash Flow as at Jun 2026

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for MercadoLibre.

Approach 2: MercadoLibre Price vs Earnings

For profitable companies, the P/E ratio is a useful way to connect what you pay for each share with the earnings that support that price. It helps you see how many dollars investors are currently willing to pay for each dollar of earnings.

What counts as a "normal" or "fair" P/E ratio usually reflects growth expectations and risk. Higher expected earnings growth or lower perceived risk can justify a higher P/E, while slower growth or higher risk tends to support a lower multiple.

MercadoLibre currently trades on a P/E of 43.33x. That sits above the Multiline Retail industry average of 18.53x and also above the peer group average of 20.93x. On the surface, this suggests investors are paying a higher price relative to current earnings than for many comparable stocks.

Simply Wall St also calculates a proprietary "Fair Ratio" for the stock of 37.13x. This Fair Ratio aims to capture what a more tailored P/E might look like once factors such as earnings growth, profit margins, risk profile, industry and market cap are taken into account. Because it reflects company specific drivers, it can be more informative than a simple comparison with peers or the broad industry.

Comparing the current P/E of 43.33x with the Fair Ratio of 37.13x suggests MercadoLibre is assessed as trading above this tailored fair value range.

Result: OVERVALUEDNasdaqGS:MELI P/E Ratio as at Jun 2026

Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page.

Upgrade Your Decision Making: Choose your MercadoLibre Narrative

Earlier it was mentioned that there is an even better way to understand valuation. This is where Narratives come in, giving you a simple story behind your numbers by linking your view of MercadoLibre's business, your own forecasts for revenue, earnings and margins, and the Fair Value those forecasts imply. All of this is available inside the Narratives tool on Simply Wall St's Community page. There you can see, for example, one investor building a higher Fair Value around a story of heavy Latin American digital adoption and strong fintech monetization, while another anchors a lower Fair Value on concerns about competition, margins and a US$1,750 analyst target. You can then compare each Fair Value with today's share price to help decide whether the stock looks above or below your line in the sand, as new earnings, news and analyst updates automatically refresh the numbers behind each story.

Do you think there's more to the story for MercadoLibre? Head over to our Community to see what others are saying!NasdaqGS:MELI 1-Year Stock Price Chart

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MELI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

MercadoLibre präsentiert ein besorgniserregendes Investitionsbild, das potenziellen Investoren ernsthafte Bedenken bereitet. Während der lateinamerikanische E-Commerce-Gigant im ersten Quartal 2026 eine Umsatzsteigerung von 49% gegenüber dem Vorjahr auf 8,85 Milliarden US-Dollar meldete, offenbart sich bei näherer Betrachtung des Unternehmensgesundheitsbildes besorgniserregende Trends, die nahelegen, dass Investoren klug daran tun, diese Aktie vorerst zu meiden. Die Zacks-Konsensschätzung für 2026 belief sich auf 40,97 US-Dollar pro Aktie und wurde im Laufe der letzten 30 Tage um 14,4% nach unten korrigiert. Der Markt erscheint zunehmend pessimistisch gegenüber MELIs Nahverkehrswachstumsprognose.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

(Bloomberg) -- Lea en español

Most Read from Bloomberg

House Republican Says Hegseth’s D-Day Remarks ‘Inappropriate’ LA Mayor Race Flips as Socialist Beats Reality TV Star Pratt Trump’s $100,000 H-1B Visa Application Fee Rejected by Judge OpenAI Joins a Massive AI IPO Pipeline Now Worth $3.6 Trillion Trump Says He, Not Congress, Is in Charge of Kennedy Center in Reversal

Of all the wild rallies in space stocks this year, none has been greater than that of a little-known company that manufactures satellites in the outskirts of Uruguay’s capital city.

Shares of Satellogic Inc., which counts former US Treasury Secretary Steven Mnuchin as its board chairman and a major investor, are up more than 250% this year, even after plunging along with their peers during Friday’s deep market slide. That return makes the shares by far the biggest beneficiary of the hype fueled by the listing of Elon Musk’s SpaceX, expected later this week.

It’s a stock that even bulls acknowledge carries plenty of risk. Satellogic has yet to turn a profit on an annual basis, and the explosion last month of a Blue Origin rocket underscored the perils and challenges inherent in an industry that’s still coming of age. Moreover, the mania around space stocks may mean that much of the shares’ future potential is already baked into the price.

"The risk of overextending and these sovereign deals not showing up — we think they will, but I think that's a risk if they don't," said Jeff Van Rhee, an analyst at Craig-Hallum Capital in Philadelphia who rates Satellogic a buy. "Everybody says space is hard, but it's worth repeating, this is very hard to do."

Emiliano Kargieman, co-founder and chief executive officer of the 16-year-old satellite maker and operator, appreciates all that but, as he sees it, the stock’s momentum goes well beyond the fervor for SpaceX’s market debut. The Argentine points to the fraught global backdrop, a clearer strategy of selling to governments and the improving finances of his firm, which builds its products in Montevideo and launches on SpaceX rockets.

“We’re seeing more demand than we can react to,” said Kargieman, 51. “We’re building infrastructure that allows customers to see and monitor everything that’s happening in their areas of interest every single day. That’s a big jump for us, but I think it’s also a big jump for the world.”

Interest in Satellogic is growing, Kargieman says, from governments drawn to its ability to provide constant high-resolution imagery more cheaply than rival systems. Its manufacturing cost is around a third of of its rivals for comparable offerings, Van Rhee at Craig-Hallum estimates.

Story Continues

“Demand accelerates around moments of geopolitical instability like now in Iran,” Kargieman said. “If you can’t fly your planes over a neighboring country, the only way you can see what’s happening is through space assets.”Satellogic’s shares have gained the most this year among nearly 170 wireless communication companies worldwide with a market value of at least $100 million, according to data compiled by Bloomberg. In the US, among more than 3,000 firms across all industries, the return ranks 11th.

With newer and cheaper commercially available systems, industry watchers say governments can increasingly access dozens of satellites capable of tracking hundreds of areas every 30 minutes, as Satellogic does, rather than a limited number of strategic locations.

Satellogic is finding it easier to capitalize on that demand after reorganizing to become a more attractive partner for US and NATO-aligned governments. It moved its domicile to Delaware last year from the British Virgin Islands. And it has left behind the optics of Chinese influence created by Tencent Holdings’ ownership stake before Satellogic’s market debut in 2022. The internet giant has since exited its position.

“They are clearly picking a side and a customer set and market,” said Kari Bingen, a senior fellow at the Center for Strategic and International Studies.

The company also brought in US intelligence and defense veterans to help with sales, which is showing results. Satellogic generated positive operating cash flow for the first time last quarter, while revenue exceeded analysts’ expectations thanks to a series of sovereign and defense-related agreements.

However, sovereign defense contracts can often take years to negotiate and finalize. Technology is also evolving and competition is fierce for the government and intelligence contracts that Satellogic hopes will drive its growth. It all means that the big runup in the shares this year leaves investors exposed if competition intensifies or if expected deals fall through, analysts say.

“Even though you're building smaller satellites and going much faster than traditional government cycles, it still takes a couple of years,” said Bingen at the CSIS. “And the commercial market still is not fully matured in this area. It is still very nascent and a very expensive endeavor.”

Mnuchin’s Liberty Strategic Capital sold half its stake in May, but it remains one of the biggest shareholders. Cantor Fitzgerald, which took Satellogic public through a blank-check company, is still a top shareholder. Liberty Strategic declined to comment, as did Cantor.

Meanwhile, MercadoLibre Inc. Chairman Marcos Galperin, a fellow Argentine who mentored Kargieman early on, remains among Satellogic’s biggest individual investors, filings show.

Starting Satellogic "was a crazy idea for someone to do particularly coming from Argentina and something that was going to take a lot of time," said Galperin, Argentina's richest man. "But it ended up proving right, so I'm very happy to have supported Emiliano from the very beginning."

Satellogic’s strength is that its satellites can capture imagery at resolutions below one meter, detailed enough to identify vehicles, aircraft and changes to infrastructure, says Kargieman, who’s based in Barcelona.

The company already has 21 satellites in orbit. But a pivotal milestone is approaching: the planned launch starting in October of its Merlin constellation composed of eight additional satellites, which will be able to map the entire globe daily using lower-cost, AI-enabled equipment. The company expects the product will accelerate its path toward profitability after it’s up and running by early 2027.

Shares of satellite competitors including Planet Labs and BlackSky Technology Inc. have rallied more than 50% this year, in part amid all the excitement around SpaceX.

It all marks a dramatic turnaround for Satellogic, whose shares cratered below $1 after its listing as investors questioned the path to profitability for satellite startups. To cut costs, Kargieman also reduced headcount by about 300 employees over the past few years, to around 150, according to him and company filings.

Manufacturing outside the US remains central to its cost advantage. Satellogic says its satellites can be produced and deployed much more cheaply thanks partly to vertically integrated manufacturing and engineering operations in Latin America.

The company reflects Kargieman’s roots in Argentina, where half the company’s staff still works. Its top product, the Aleph Observer, is a reference to an iconic fictional short story by Argentine author Jorge Luis Borges, about a small object holding the entire world inside it.And Kargieman has a uniquely Argentine way to express his product’s capabilities: powerful enough, he says, to spot the country’s ubiquitous backyard parrilla barbecues.“I’m sure you’d be able to see the smoke,” he said.

--With assistance from Brad Stone, Shin Pei, Marie Monteleone and Sophie Butcher.

Most Read from Bloomberg Businessweek

SpaceX IPO Demands Trust in Musk’s Entangled Empire Chinese Diners Will Wait Five Hours for This Conveyor-Belt Sushi Men in Blazers Is Coming to Take Over the World Cup Where’s the Global Economic Meltdown? What Trump Delivered for Amazon

©2026 Bloomberg L.P.

View Comments

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

MercadoLibre(NASDAQ: MELI) stock has had a tough year. While the S&P 500 has gained 24%, MercadoLibre stock has lost 34.5%. But has the stock been oversold?

Eight-five percent of covering analysts say to buy the stock right now, and the lowest price target from any Wall Street analyst suggests a 9% upside over the next year. One analyst, Hector Maya from Scotiabank, sees it heading to $2,800, a 72% increase from today's price. Is he right?

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

Boosting the shift to digital in Latin America

MercadoLibre hasn't taken a break from high growth for years. It's an e-commerce and financial technology (fintech) company in Latin America, a region that's underpenetrated in both sectors, and it's benefiting as the countries it serves continue to embrace new technology.Image source: Getty Images.

It has had a 31% compound annual growth rate (CAGR) over the past 10 years, but the long-term opportunity remains compelling. E-commerce penetration is only 14%, compared with 27% in the U.S. and 32% in China, and its markets have a total $5.5 trillion addressable market. MercadoLibre's trailing 12-month revenue of $31.8 billlion is a tiny fraction.

It's the top e-commerce company in the region, and its platform grows through a positive cycle of reinforcing network effects; as more buyers join, more suppliers join, offering a wider array of merchandise. That stimulates engagement, and buyers in at least three categories increased 130% from 2022 through the 2026 first quarter. Over the same time frame, average quarterly purchase frequency rose from 6.8 to 9.

Fintech is a similar story. MercadoLibre has the highest monthly active users in four of its largest markets at 83 million, and credit users increased from 10 million in 2022 to 41.9 million as of the first quarter. The credit portfolio rose from $2.8 billion to $14.6 billion over the same time.

Buy on the dip

Wall Street analysts only give price targets for a 12- to 18-month period. So whatever price they're looking for is relatively short-term. In the short term, MercadoLibre stock could be somewhat pressured; its profitability is taking a hit from investments that are meant to position it for long-term growth.

But if you're a long-term investor, near-term headwinds shouldn't scare you. In any case, at this point, every Wall Street analyst thinks the stock is oversold based on the current price targets, even in the near term. Wall Street certainly doesn't have any guarantees, and what analysts say should always be taken with a large grain of salt. However, when they unite to agree that a stock looks undervalued today, and that jibes with what you know about the stock's performance and opportunities, it's a strong sign that there's value here.

Story Continues

MercadoLibre stock may or may not hit $2,800 by the end of the period, and that price target was actually a downgrade from a previous target of $3,500. But in the long term, it could be a standout stock for patient investors.

We just issued 'double down' alerts on 3 stocks — find out if MercadoLibre made our list

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $532,622! Apple: if you invested $1,000 when we doubled down in 2008, you’d have $58,577! Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $443,191!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you joinStock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of June 1, 2026

Jennifer Saibil has positions in MercadoLibre. The Motley Fool has positions in and recommends MercadoLibre. The Motley Fool has a disclosure policy.

Is MercadoLibre Stock Headed to $2,800? 1 Wall Street Analyst Thinks so was originally published by The Motley Fool

View Comments