Trader robot proves successful, yielding +4.44% return for MELI recently
The Trend Trader: Popular Stocks (TA&FA) AI trading robots have recently caught the attention of market participants, delivering a remarkable +4.44% gain while trading MELI (MercadoLibre) over the past week. This article delves into the earnings results and market dynamics surrounding MELI, shedding light on its potential future trajectory.
Analyzing Earnings Results:
MELI's last earnings report, released on May 03, surpassed expectations with earnings per share (EPS) of $3.97, outperforming the estimated value of $2.81. With 482.96K shares outstanding, the current market capitalization of MELI stands at an impressive 57.93B. These figures highlight the company's strong financial performance and reflect positively on its growth prospects.
Price Analysis and Potential Opportunities:
When examining the price movements of MELI, it is worth noting that the stock may rebound above the lower Bollinger Band and potentially head towards the middle band. Historical data reveals that in 28 out of 30 instances where MELI's price broke its lower Bollinger Band, the price went on to rise further in the following month. This statistical pattern suggests a 90% likelihood of a continued upward trend, which presents an enticing opportunity for traders.
Market Cap and Industry Overview:
The Internet Retail Industry, in which MELI operates, boasts an average market capitalization of 25.42B. The market cap for tickers in this group spans a wide range, from 30 to 1.33T. Amazon (AMZN) currently holds the highest valuation in the industry at a staggering 1.33T, while YUKA represents the lowest valued company with a market cap of 30. This data provides context for MELI's market positioning within its industry.
Notable Price Movements:
Within the Internet Retail Industry, the average weekly price growth across all stocks amounted to 1%. Looking at the monthly and quarterly trends, the average price growth was 2% and -5% respectively. Notably, TKAYF experienced the highest price growth at 25%, signaling potential opportunities for investors. Conversely, TKAT endured the largest fall at -12%, highlighting the volatility inherent in the industry.
Volume Analysis:
Analyzing the trading volume across the Internet Retail Industry, it is observed that the average weekly volume growth for all stocks was -2%. On a monthly basis, the average volume growth registered a decline of -23%, while the average quarterly volume growth was -19%. These figures suggest decreased investor participation during the specified periods and emphasize the need for cautious trading strategies.
Summary:
The utilization of AI trading robots, such as those offered by Trend Trader: Popular Stocks (TA&FA), has proven to be fruitful for traders, as evidenced by the impressive +4.44% gain achieved while trading MELI. Additionally, MELI's strong earnings report and market capitalization of 57.93B contribute to its positive outlook. Traders should consider the historical trend of MELI's price movement in relation to the Bollinger Bands, indicating a 90% probability of a continued upward trajectory.
Aroon Indicator for MELI shows an upward move is likely
MELI's Aroon Indicator triggered a bullish signal on September 19, 2023. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 301 similar instances where the Aroon Indicator showed a similar pattern. In of the 301 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
MELI moved above its 50-day moving average on August 25, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MELI advanced for three days, in of 360 cases, the price rose further within the following month. The odds of a continued upward trend are .
MELI may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The 10-day RSI Indicator for MELI moved out of overbought territory on September 08, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 36 similar instances where the indicator moved out of overbought territory. In of the 36 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on September 18, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MELI as a result. In of 97 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MELI turned negative on September 18, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MELI declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. MELI’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (29.499) is normal, around the industry mean (17.276). P/E Ratio (89.286) is within average values for comparable stocks, (73.457). Projected Growth (PEG Ratio) (1.095) is also within normal values, averaging (2.322). Dividend Yield (0.000) settles around the average of (0.038) among similar stocks. P/S Ratio (5.650) is also within normal values, averaging (9.418).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a providesr of internet trading services
Industry InternetRetail
MELI and
Correlation & Price change
A.I.dvisor indicates that over the last year, MELI has been loosely correlated with CVNA. These tickers have moved in lockstep 52% of the time. This A.I.-generated data suggests there is some statistical probability that if MELI jumps, then CVNA could also see price increases.
| Ticker / NAME | Correlation To MELI | 1D Price Change % | ||
|---|---|---|---|---|
| MELI | 100% | -2.53% | ||
| CVNA - MELI | 52% Loosely correlated | -1.85% | ||
| JMIA - MELI | 49% Loosely correlated | -2.43% | ||
| AMZN - MELI | 49% Loosely correlated | -4.41% | ||
| GLBE - MELI | 48% Loosely correlated | -3.02% | ||
| CPNG - MELI | 46% Loosely correlated | -3.57% | ||
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