An economic downturn caused the Nasdaq Composite index to plunge 33% in 2022. Tech companies were some of the hardest hit as spikes in inflation led to reductions in consumer and commercial spending. The PC market experienced steep declines in sales. Meanwhile, e-commerce busines
For Immediate ReleaseChicago, IL – November 13, 2023 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Walmart WMT, Target's TGT and Amazon AMZN.
Almost every investor has the same dream -- to become a millionaire. For some, it's a goal that must be met before they can comfortably retire. For others, it's just about reaching a critical milestone along their investing journey. Regardless of why an investor wants to hit that
Which stocks are best to buy now? According to Top Wall Street Analysts, the three stocks listed below are Strong Buys. Each stock received a new Buy rating recently and has a significant upside as well.
To find more stocks like these, take a look at TipRanks’
Analyst Top Stocks tool. It shows you a real-time list of all stocks that have been recently rated by Top-ranking Analysts.
Here are today’s top stock picks, according to analysts. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio.
Amazon (
NASDAQ:AMZN
) – Amazon is an e-commerce and cloud-computing behemoth. On Friday,
Bank of America analyst Justin Post maintained a Buy rating on the stock with a price target of $168. Interestingly, all the 33 Top Analysts who recently rated the stock gave it a Buy. Taken together, the average of their 12-month price targets implies an upside of about 23%.
Alibaba (
NYSE:BABA
) – Alibaba is a Chinese multinational company with a robust e-commerce presence and cloud computing business. On Friday,
Loop Capital analyst Rob Sanderson reiterated a Buy rating on the stock with a price target of $125. In the last three months, all three Top Analysts covering the stock rated it a Buy. Collectively, the average of their 12-month price targets implies an upside of nearly 74%.
Lowe’s (
NYSE:LOW
) – Lowe’s is one of the leading home improvement retailers in the U.S. On Friday,
Wells Fargo analyst Zachary Fadem reaffirmed a Buy rating on the stock with a price target of $215. In the last three months, 11 out of the 14 Top Analysts who rated the stock gave it a Buy. The average of their 12-month price targets indicates an upside of about 25%.
Who are the Top Analysts?
TipRanks ranks financial analysts according to the success rates of their ratings and the average return on each of their ratings. The Top Analysts have each earned a five-star ranking, thanks to the accuracy and profitability of their ratings over time.
See real-time analyst rankings and learn more about the performance of Top Analysts on TipRanks’
Top Wall Street Analysts page.
Disclosure
Disclaimer
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Roku (NASDAQ:ROKU) stock appears to be turning the corner following its Q3 report last week, rising by 40% over the last five trading days. There was much to like about Roku’s numbers. Revenues came in at $912 million, up by 20% versus last year and well ahead of the roughl
Gamers are projected to spend $250 billion on video game products in 2023, with that figure forecast to expand at a compound annual growth rate of 10% through 2027 (per Statista). The industry hit some roadblocks over the last year as macroeconomic headwinds led to reductions in
Below is Validea's guru fundamental report for AMAZON.COM INC (AMZN). Of the 22 guru strategies we follow, AMZN rates highest using our P/B Growth Investor model based on the published strategy of Partha Mohanram. This growth model looks for low book-to-market stocks that exhibi
For the last couple of weeks investors have gotten their quarterly downloads for portfolio companies as earnings season is on full display. As usual, big tech garnered a fair amount of scrutiny given investor curiosity and expectations around artificial intelligence (AI). For Mic
A bull market isn't here yet, but it may be on the way. History shows us difficult markets always lead to better market times. And bull markets definitely are worth waiting for. The average bull market between 1926 and 2017 lasted six times longer than the average bear market and
E-commerce platform MercadoLibre (
NASDAQ:MELI
) has been among the hottest tech stocks in the past decade, creating significant wealth for shareholders. Since its IPO in August 2007, MELI stock has returned a staggering 6,347%, valuing the company at $69.5 billion by market cap. While shares of MercadoLibre have surged 66% in 2023, the stock is still down 32% from all-time highs, providing a dip-buy opportunity, in my view.
I remain bullish on MercadoLibre, as it is part of a rapidly expanding addressable market, allowing the company to increase revenue and earnings at an enviable pace in the next few years. Moreover, its widening portfolio of products and services should further diversify its revenue base, push profit margins higher, and act as a flywheel for MELI stock.
An Overview of MercadoLibre
MercadoLibre is an e-commerce marketplace operator based in Latin America. This includes the Mercado Libre Marketplace, which allows businesses and merchants to list merchandise online. There is also Mercado Pago, a financial services platform that facilitates online and offline transactions, providing a mechanism for users to facilitate digital payments.
Additionally, the company offers Mercado Fondo, where users can invest funds deposited in the Pago accounts, while it also has a vertical where MercadoLibre extends loans or credit lines to merchants and consumers.
How Did MercadoLibre Perform in Q3?
MercadoLibre is among Latin America's fastest-growing companies and has increased its revenue from $2.29 billion in 2019 to $10.54 billion in 2022, indicating a compound annual growth rate of 66.3%. In
Q3 2023, it reported revenue of $3.76 billion, higher than the
consensus estimate of $3.57 billion. Plus, total payment volume surged 121.2% to $47.3 billion, while gross merchandise volume grew by 59.3% to $11.4 billion in the September quarter.
MercadoLibre has invested heavily over the years to develop its products, allowing it to benefit from accelerated growth and consistent operating margins.
Despite a challenging macro environment, MercadoLibre's growth in items sold rose by 26% year-over-year in Q3, up from the 18% growth in the second quarter. These stellar growth rates meant MELI increased its revenue by 40% while operating income more than doubled for the fourth consecutive quarter to $685 million, indicating a healthy margin of 18.2%.
MercadoLibre is Latin America’s Amazon
MercadoLibre is quite similar to Amazon (
NASDAQ:AMZN
), serving millions of customers in Latin America. Like Amazon, MercadoLibre gained massive traction due to its online marketplace, which helped it enter new markets such as advertising, credit, and asset management.
These high-margin businesses allowed MercadoLibre to increase operating income by 131% year-over-year in Q3 while adjusted earnings also tripled to $7.16 per share, ahead of estimates, which stood at $5.86 per share.
Investors quickly noticed the resiliency of MELI's Credit business, as loan originations grew to $3.64 billion in Q3, up from $2.5 billion in the year-ago period. MercadoLibre is offering more significant loan amounts to businesses while maintaining sustainable delinquency rates.
Its Ad sales also grew by 70% to $200 million in Q3 and may be a key revenue driver for MELI stock in the upcoming decade. For reference, Amazon is currently the third-largest digital ad platform in the world due to the high purchase intent of its user base.
Just like Amazon Prime, MercadoLibre offers Meli+, which includes free shipping of products and subscriptions to streaming platforms, including Disney+.
What Next for MELI Stock?
MercadoLibre ended Q3 with 119.8 million active users and has enough room to keep growing at a rapid clip. According to a
Statista report, Latin America's e-commerce market was forecast to grow by 15.5% annually through 2025 (with 2019 being the starting point) due to rising internet penetration rates and higher income levels.
MercadoLibre's impressive growth rates have enabled it to consistently report profits, thanks to the benefits of economies of scale. An asset-light business model also suggests that its earnings will grow faster than revenue due to high operating leverage. For example, MELI's massive scale and increasing brand value could allow the company to lower its marketing expenses over time.
Is MELI Stock a Buy, According to Analysts?
Wall Street remains bullish on MELI stock, giving it a Strong Buy rating. Of the 12 analysts covering MELI stock, 10 recommend a Buy, two recommend a Hold, and none recommend a Sell. The
average MELI stock price target is $1,476.58, indicating upside potential of almost 7.4% from current levels.
The Final Takeaway
MercadoLibre is now a global tech giant and is positioned to deliver market-beating returns to shareholders. I believe that its capability to achieve strong revenue growth, coupled with enhanced profit margins and the advantage of economies of scale, positions it as a prime investment option.
Disclosure