Group 1: Market Overview - The S&P 500 is currently down in 2025, presenting a potential buying opportunity as economic uncertainty drives investor fear [1] - Despite market conditions, many companies are performing well and have significant growth opportunities [1] Group 2: MercadoLibre - MercadoLibre stock has increased by 41% over the past year and is the only stock on the list that is up in 2025 [3] - The company operates an e-commerce platform in Latin America, which is still underpenetrated at about 13% compared to 24% in the U.S., benefiting from a growing customer base [4] - Revenue for MercadoLibre increased by 96% year over year in Q4 2024, with gross merchandise volume (GMV) up 56% [4] - The company has developed a fintech infrastructure that supports digital payments, with total payment volume increasing by 49% year over year in Q4 [6] - MercadoLibre is the leading fintech company in three of its four largest markets by monthly active users [6] - The company is positioned for significant growth as it drives a digital revolution in its region [7] Group 3: Shopify - Shopify stock has risen by 25% over the past year, with strong growth and increasing profitability [8] - The company has expanded beyond e-commerce websites to become a full commerce platform, with most sales now coming from payment processing [9] - International sales grew by 33% year over year in 2024, accounting for 30% of total revenue [10] - Shopify has reported seven consecutive quarters of revenue growth of at least 25%, with a free-cash-flow margin reaching 22% in Q4 [11] - The company has substantial long-term opportunities and is rolling out more services in international markets [10][11] Group 4: On Holding - On Holding stock has increased by 45% over the past year, recognized for its unique sneaker soles and growing brand presence [12] - The company reported a 41% year-over-year revenue increase in Q4 2024, driven by a 48% rise in direct-to-consumer sales [14] - On's gross margin expanded from 60.4% to 62.1% year over year in Q4, with net income increasing by 435% [14] - The management has a four-pillar strategy focused on brand awareness, omnichannel strategy, product assortment expansion, and operational efficiency [15]

Core Insights - MercadoLibre (NASDAQ: MELI) has outperformed the S&P 500 with a 28% return over the past year despite poor performance in Mexican and Brazilian equities [1] - The company generates 77.3% of its revenues from Mexico and Brazil, indicating a strong reliance on these markets for its financial performance [1] Company Performance - The stock of MercadoLibre has doubled the S&P 500's performance in the last year, showcasing its strong growth trajectory [1] - The company is based in Argentina but has significant revenue exposure to Mexico and Brazil, which are critical markets for its operations [1]

Core Insights - MercadoLibre has experienced significant stock growth since its IPO in 2007, increasing over 110 times from an initial price of $18 per share [1] - Despite concerns about its high P/E ratio of 53 and operating in a volatile Latin American market, there are reasons to believe the stock still has considerable growth potential [2] Company Overview - MercadoLibre operates across 18 Latin American countries, generating revenue primarily from e-commerce, fintech, and logistics services [3] - The company has adapted to regional challenges by launching Mercado Pago for fintech services and Mercado Envios for shipping and fulfillment [4] Financial Performance - In 2024, MercadoLibre achieved a revenue growth of 37%, with net income reaching $1.9 billion, marking a 94% increase year-over-year [5] - Analysts project a revenue increase of 25% in 2025 and 23% in 2026, which could support a forward P/E ratio of 42 [5] Market Position - MercadoLibre's market capitalization is approximately $100 billion, significantly smaller than Amazon's $2.1 trillion market cap, indicating potential for future growth [6] - As the company continues to expand its services and improve the lives of Latin Americans, it is positioned for substantial returns in the coming years [6]

Core Insights - The Zacks Premium service provides tools for investors to enhance their stock market engagement and confidence through daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E, PEG, and Price/Sales [3] - The Growth Score emphasizes a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [4] - The Momentum Score leverages trends in stock prices and earnings estimates to identify optimal times for investment [5] - The VGM Score combines all three Style Scores, providing a comprehensive indicator for evaluating stocks based on value, growth, and momentum [6] Zacks Rank - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to facilitate portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [7][8] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B to maximize potential success [9] - Stocks with lower ranks, such as 4 (Sell) or 5 (Strong Sell), may still have high Style Scores but are likely to experience declining earnings forecasts [10] Company Spotlight: MercadoLibre - MercadoLibre, Inc., based in Buenos Aires, is a leading e-commerce platform in South America, dominating markets in several countries including Brazil and Argentina based on unique visitors and page views [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it an attractive option for growth investors [11] - MercadoLibre is projected to achieve year-over-year earnings growth of 26% for the current fiscal year, with recent earnings estimates revised upward by six analysts [12] - The Zacks Consensus Estimate for MercadoLibre's earnings has increased by $3.74 to $47.50 per share, alongside an average earnings surprise of 16.4% [12]

Core Insights - Mercado Libre launched a new podcast series titled CFO Perspectives, featuring CFO Martin de los Santos discussing the company's performance and future outlook following Q4 2024 results [1][2] - 2024 was a historic year for Mercado Libre, marking its 25th anniversary and achieving significant milestones, including 100 million unique buyers and 61 million monthly active users [3] Financial Performance - In 2024, Mercado Libre achieved consolidated net revenue of US$21 billion and gross merchandise value (GMV) of US$51.5 billion, with over 1.8 billion products sold through Mercado Envios [5] - The company emphasizes its commitment to investing in logistics, credit growth, and advertising to capture opportunities in the Latin American market [2][3] Strategic Focus - The company aims to enhance online commerce participation, promote financial inclusion, and expand its advertising business [3] - Mercado Libre operates a comprehensive ecosystem that includes e-commerce, digital banking, and various services, catering to over 100 million annual active buyers [5]

Core Insights - Mercado Libre launched a new podcast series titled CFO Perspectives, featuring CFO Martin de los Santos discussing the company's performance and future outlook following Q4 2024 results [1][2] - 2024 was a historic year for Mercado Libre, marking its 25th anniversary and achieving significant milestones, including 100 million unique buyers and 61 million monthly active users [3] Financial Performance - In 2024, Mercado Libre achieved consolidated net revenue of US$21 billion and gross merchandise value (GMV) of US$51.5 billion, with over 1.8 billion products sold through Mercado Envios [5] - The company aims to continue investing in online commerce, financial inclusion, and advertising to capture growth opportunities in Latin America [3] Company Overview - Founded in 1999, Mercado Libre operates in 18 countries and employs over 84,000 people, providing a comprehensive ecosystem for e-commerce and fintech solutions [5] - The platform facilitates various services, including buying, selling, advertising, credit, insurance, and payment solutions, catering to both online and offline transactions [5]

The Nasdaq Composite (^IXIC -0.18%) is officially in a correction, with the tech-heavy Nasdaq-100 index down about 12% from its recent high. And while there are some stocks that still look rather pricey, even after the downturn, there are some excellent bargains to be found for patient long-term investors.With that in mind, here are two "forever stocks" I own in my portfolio, both of which look attractive after dropping by 15% or more from their 2025 peaks.A second chance to get "Back to Starbucks"Starbucks ...

Company Performance - MercadoLibre (MELI) closed at $2,009.34, down 1.76% from the previous trading session, underperforming the S&P 500's gain of 0.55% [1] - Over the past month, shares of MercadoLibre increased by 1.61%, outperforming the Retail-Wholesale sector's decline of 7.03% and the S&P 500's decline of 5.56% [1] Upcoming Earnings - Analysts expect MercadoLibre to report earnings of $7.82 per share, reflecting a year-over-year growth of 15.34% [2] - The Zacks Consensus Estimate for revenue is projected at $5.5 billion, indicating a 27% increase from the previous year [2] Full Year Projections - For the full year, earnings are projected at $47.50 per share and revenue at $25.89 billion, representing year-over-year changes of +26.03% and +24.59%, respectively [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for MercadoLibre are important as they reflect short-term business dynamics, with positive revisions indicating a favorable business outlook [4] Estimate Revisions and Share Price Momentum - Research shows that estimate revisions correlate with near-term share price momentum, and investors can utilize the Zacks Rank for actionable insights [5] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown that 1 stocks have delivered an average annual return of +25% since 1988 [6] - The Zacks Consensus EPS estimate for MercadoLibre has increased by 8.06% over the past month, and the company currently holds a Zacks Rank of 2 (Buy) [6] Valuation Metrics - MercadoLibre has a Forward P/E ratio of 43.06, which is a premium compared to the industry average Forward P/E of 21.95 [7] - The company has a PEG ratio of 1.15, aligning with the Internet-Commerce industry's average PEG ratio of 1.15 [7] Industry Context - The Internet-Commerce industry is part of the Retail-Wholesale sector and currently holds a Zacks Industry Rank of 65, placing it in the top 26% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Insights - MercadoLibre's stock gained 10% in February following a strong earnings report, alleviating concerns about economic volatility in its operating regions and boosting investor confidence in its potential [1][2] Group 1: Company Performance - The company operates an e-commerce platform across 18 Latin American countries, holding a leading position in the region and leveraging its first-mover advantage [2] - Revenue increased by 96% year over year (currency neutral), gross merchandise volume rose by 56%, and total payment volume grew by 49%, indicating robust performance in both e-commerce and financial services [4] - Net income surged by 278%, and free cash flow increased by 111%, showcasing the company's strong financial health [4] Group 2: Growth and Expansion - MercadoLibre is expanding its credit portfolio, which grew by 74% year over year, and assets under management increased by 129%, reflecting growth in its financial services segment [5] - The company plans to launch its first digital bank in Mexico, further diversifying its offerings [5] - E-commerce in MercadoLibre's markets is still underdeveloped compared to the U.S., presenting significant growth opportunities, as evidenced by a 24% increase in unique buyers in the fourth quarter of 2024 compared to the previous year [6] Group 3: Market Conditions - Despite economic volatility and currency devaluation in key markets like Argentina and Brazil, the company's strong performance is fostering greater confidence in its resilience and growth potential [7] - The stock currently trades at a forward one-year P/E ratio of 33, which is considered an attractive valuation for a high-growth stock, suggesting it may be a good time to invest [8]

Core Viewpoint - MercadoLibre is positioned as a leading growth stock in Latin America, with significant potential for future expansion in e-commerce and fintech sectors, driven by its strong performance metrics and market opportunities [2][5][12]. Company Overview - MercadoLibre operates similarly to Amazon, providing e-commerce services across 18 Latin American countries and has developed a fintech business to cater to underbanked populations [3][4]. - The company has diversified its offerings, including advertising, asset management, and payment solutions, maintaining a first-mover advantage in many areas [4]. Current Performance - In the fourth quarter of 2024, MercadoLibre reported a 96% year-over-year increase in revenue, with gross merchandise volume up 56% and total payment volume up 49% [5]. - The credit portfolio grew by 74%, and adjusted free cash flow increased by 111%, with net income rising to $649 million from $165 million the previous year [5]. Market Potential - E-commerce penetration in MercadoLibre's markets is only 14.4%, indicating substantial room for growth compared to the U.S. market [8]. - The total market opportunity for e-commerce is projected to grow by 54%, from $151 billion in 2023 to $232 billion by 2028, with a forecasted e-commerce penetration of 17.4% [9]. - The retail advertising market in the region is expected to triple by 2028, reaching $5 billion, highlighting additional growth avenues [9]. Fintech Opportunities - MercadoLibre is the leading fintech company in Mexico, Argentina, and Chile, and holds the second position in Brazil, where banking penetration is low [10]. - Less than half of the Mexican population has a bank account, and in Brazil, a significant portion of credit is controlled by a few large banks, presenting an opportunity for disruption [10]. Historical Performance - Over the past decade, MercadoLibre has significantly increased shareholder value, with a $10,000 investment growing to over $160,000 [11]. Future Growth Projections - If MercadoLibre maintains a compound annual growth rate of 30% currency neutral over the next 10 years, revenue could rise from $21.7 billion to nearly $300 billion [12].