Mercadolibre: potential undervalued? Experts see further price increases by the end of the year

Mercadolibre: potential undervalued? Experts see further price increases by the end of the year

According to a report by www.aktienwelt360.de,

Mercadolibre's shares are up 58% in the current trading year 2023. Nevertheless, I would like to point out that the top stock still has a lot of potential and may only be at the beginning of its positive development.

Mercadolibre has proven to be a top stock over the last 15 years. The e-commerce giant played a crucial role in defining e-commerce in Latin America, creating an ecosystem that includes digital payment services and other value-added services. This offering highlighted the massive potential of the market in Latin America. Last quarter, the company reported an impressive 69% local currency sales growth, generating $3.8 billion in revenue. In addition, the goods volume and the payment volume grew by 59% and 121%, respectively, compared to the previous year. The company's acceptance and growth continue to increase at a high level.

What is particularly promising is that Mercadolibre's profitability is increasing. Net income rose to $359 million in the most recent quarter, compared to $822 million for the first nine months.

The company's stock valuations are currently moderate compared to its Western counterparts. The price-to-sales ratio is around 5 and the price-to-earnings ratio is around 59. Given these growth rates and earnings growth, this could indicate that the company still has a lot of untapped potential.

Overall, Mercadolibre is becoming a profitable and growing ecosystem. Despite current valuations, I suggest that the company still has significant growth opportunities and could potentially reach further valuation benchmarks in the future.