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3 Phenomenal Stocks That Could Double in 2025
MELIMercadoLibre(MELI) The Motley Fool· The Motley Fool·2025-01-13 12:00

Group 1: Super Micro Computer - Super Micro Computer experienced significant volatility in 2024, initially rising over 300% in three months before facing allegations of accounting fraud [3][6]. - An independent audit later cleared the company of wrongdoing, restoring its potential as an investment [3][5]. - The company specializes in server components and fully assembled servers, with a focus on liquid-cooled racks that provide long-term cooling cost savings [4]. - The stock is currently undervalued, trading at a forward price-to-earnings multiple of 11.7, suggesting potential for significant appreciation [7]. Group 2: PayPal - PayPal has shown signs of revitalization under CEO Alex Chriss, with active accounts increasing by 1% in Q3, a notable improvement from previous declines [8]. - The company's transaction margin is rising, indicating improved profitability, while revenue growth is currently at 6% [8][10]. - PayPal has reduced its share count by 6.5% over the past year, enhancing earnings-per-share (EPS) [9]. - The stock trades at a forward earnings multiple of 18, and with continued growth, there is potential for significant stock appreciation in 2025 [10]. Group 3: MercadoLibre - MercadoLibre operates both a commerce and fintech business, with recent losses in its credit division affecting overall earnings [11]. - The stock is down nearly 20% from its all-time highs, but there is potential for recovery if the company can improve profit margins while maintaining growth [12]. - Similar to PayPal, achieving a true double in stock price will be challenging, but strong performance in 2025 could lead to significant market interest [13]. - MercadoLibre is viewed as an attractive buy at present, with long-term growth potential [13].