2 Oversold Stocks With Major Reasons to Rebound

Market Overview - The recent market selloff has affected nearly all sectors, driven by fears related to trade wars, tariffs, and economic uncertainty, yet it may present investment opportunities for stocks near support levels or perceived discounts [1] MercadoLibre - MercadoLibre, Inc. is Latin America's largest e-commerce and fintech platform, operating in 18 countries and connecting millions of buyers and sellers [2] - Despite a strong Q4 2024 earnings report, MercadoLibre's stock has fallen over 11% from its 52-week highs, attributed to broader market weakness rather than company fundamentals [3] - Q4 2024 revenue reached $6.1 billion, a 37$5.9 billion; net income surged to $639 million, exceeding the forecast of$402 million [4] - The gross merchandise volume hit $14.5 billion, up 56$58.9 billion in payments, a 33% increase [4] - The stock is returning to a key support zone, suggesting a potential buying opportunity for investors [5] PayPal - PayPal Holdings is one of the largest fintech companies globally, but its stock has recently declined, down nearly 19% year-to-date [6][7] - The Q4 2024 earnings report showed revenue growth of 4% year-over-year to $8.37 billion, beating analyst estimates, with net income at$1.2 billion and adjusted EPS of $1.19 [8] - PayPal announced a$15 billion share buyback program, indicating confidence in its cash flow, which increased by 40% to $2.1 billion for the quarter [9] - Despite solid earnings, the stock dropped nearly 10$65, PayPal may be an attractive buy-the-dip candidate for long-term investors [11] Conclusion - Both MercadoLibre and PayPal have demonstrated strong earnings yet are trading at potential discounts, making them worthy of consideration for investors seeking quality stocks with solid fundamentals and promising technical setups [12]