New Trade for September 7th, 2023

Right now, emerging-market stocks are cheaper than they’ve been over the past 15 years—as measured by the Morningstar Emerging Markets Index—while U.S. stocks look overpriced compared with their long-term average valuations based on Morningstar’s U.S. counterpart. Emerging-market stocks look poised to gain as multiple tailwinds emerge, including a weakening U.S. dollar and maturing economic conditions in several emerging-market countries. 

There are already signs of a rotation into emerging markets underway as investors prepare their portfolios for the world after monetary tightening. Today’s recommendation is a gem among emerging markets stocks that’s easy to get excited about…

MercadoLibre (MELI)

MercadoLibre is the undisputed titan in South America’s online retail arena. With a presence in 18 different countries and dominating market share in places like Brazil, this e-commerce powerhouse has outpaced even the likes of Amazon in the region.

Over the past decade, MercadoLibre’s growth trajectory has been nothing short of awe-inspiring. And guess what? The pandemic-led tailwinds only fueled the fire, accelerating e-commerce adoption and solidifying its position as a significant player in South America’s bustling digital economy.

Let’s talk numbers, shall we? Brace yourself for astonishing records! With a jaw-dropping 5-year average revenue growth of over 56% and forward revenue estimates surpassing 30%, MercadoLibre is on a rocket ride. Their operating cash flow growth is soaring over 30% year-over-year, a staggering 4,500% higher than the sector median.

Just when you thought it couldn’t get any better, MercadoLibre’s recent second-quarter performance wowed us all. With GAAP earnings per share of $5.16, they crushed estimates by a whopping 88 cents. And their revenue soared to $3.42 billion, a solid 32.0% year-over-year increase, outpacing forecasts by a cool $150 million. Oh, and let’s not forget their Total Payment Volume, which reached an impressive $42.1 billion, marking a phenomenal 96.6% year-over-year growth on an FX-neutral basis.

MercadoLibre is a force to be reckoned with, and its growth story is far from over. So, if you’re on the lookout for a powerhouse stock with immense potential, look no further.

[stock_market_widget type=”accordion” template=”extended” color=”#5679FF” assets=”MELI” start_expanded=”true” display_currency_symbol=”true” api=”yf”]


Get Free Stock Picks via SMS by Signing Up Below!

I would like to receive timely trade ideas and stock watchlists from Wall Street Watchdogs at the phone number provided. Message frequency varies. Message and data rates may apply. Reply HELP for help or STOP to cancel.(Watchdogs SMS Terms of Service & Privacy Policy)