#3 - MercadoLibre (NASDAQ:MELI)
MercadoLibre Inc. (NASDAQ: MELI) is another risk-on stock that investors should consider if a Santa Claus rally becomes a reality. The company is to e-commerce in Latin America like Amazon.com Inc. (NASDAQ: AMZN) is to e-commerce in the United States.
And no matter if you’re looking in the United States or abroad, acceptance of e-commerce is growing. According to Capital One Research, online shopping sales will grow at an average annual rate of 8.18% between 2023 and 2030. By 2030, it is projected that online shopping will make up 25% of global sales.
After 15 years of rapid expansion across 18 countries, MercadoLibre is well-positioned to take advantage of that growth. Analysts are forecasting a 33% growth in earnings per share (EPS) in the next 12 months. Revenue for the first two months of 2024 is already about 42% higher YoY.
That makes the forward P/E of around 52x earnings easier to digest. And if investors are struggling to digest a share price of over $2,000 per share, it’s important to note that the company has never split its stock, but at this level, it may be an attractive opportunity to attract new investors.
About MercadoLibre
MercadoLibre, Inc operates online commerce platforms in the United States. It operates Mercado Libre Marketplace, an automated online commerce platform that enables businesses, merchants, and individuals to list merchandise and conduct sales and purchases digitally; and Mercado Pago FinTech platform, a financial technology solution platform, which facilitates transactions on and off its marketplaces by providing a mechanism that allows its users to send and receive payments online, as well as allows users to transfer money through their websites or on the apps.
Read More - Current Price
- $2,054.90
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $2,301.67 (12.0% Upside)
