MELI - MercadoLibre Stock Is Cheaper Than You May Think
2024-04-20 06:26:00 ET
Summary
- MercadoLibre, Inc. stock is currently trading 31% off its all-time high, presenting a buying opportunity, in my view - read on to learn why I think so.
- The margin decline in Q4 should be seen as a one-off event rather than a new "secular trend", in my opinion. The company's investments position it for long-term growth.
- The stock may be cheaper, than you might have thought: based on my DCF model, its fair value is >40% higher than today's price.
- Goldman analysts project strong growth potential for MELI, with a potential upside of 56% from the current price.
- I think if you buy MELI today, you're getting a great, fast-growing company operating in large underserved end markets with great prospects. That's why I rate the stock a "Buy" today.
For numerous investors, including myself, one of the pivotal factors in considering long-term investments is the margin of safety. When I analyze stocks, it is often first important for me to find the margin of safety, if there is one. Or the business model must be so innovative, and the source market must represent such a large demand, that the valuation of the company automatically takes a back seat. And it's better to have both the first and the second - which is exactly what I see in MercadoLibre, Inc. ( MELI ) stock today....
MercadoLibre Stock Is Cheaper Than You May Think