Analysts Conflicted on These Consumer Cyclical Names: National Vision Holdings (EYE), Marriott Vacations Worldwide Corporation (VAC) and Mercadolibre (MELI)
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National Vision Holdings (EYE)
Barclays analyst Adrienne Yih maintained a Hold rating on National Vision Holdings on May 9 and set a price target of $17.00. The company's shares closed last Friday at $17.17.
According to TipRanks.com, Yih is a 4-star analyst with an average return of 5.0% and a 48.5% success rate. Yih covers the NA sector, focusing on stocks such as Dick's Sporting Goods, Canada Goose Holdings, and Lululemon Athletica.
Currently, the analyst consensus on National Vision Holdings is a Moderate Buy with an average price target of $17.83, representing a 3.5% upside. In a report issued on May 7, Morgan Stanley also maintained a Hold rating on the stock with a $17.00 price target.
Marriott Vacations Worldwide Corporation (VAC)
In a report issued on May 9, Brandt Montour from Barclays maintained a Buy rating on Marriott Vacations Worldwide Corporation, with a price target of $88.00. The company's shares closed last Friday at $64.65, close to its 52-week low of $63.46.
According to TipRanks.com, Montour is a 4-star analyst with an average return of 6.1% and a 47.3% success rate. Montour covers the NA sector, focusing on stocks such as Six Flags Entertainment Corporation, Hilton Worldwide Holdings, and Wyndham Hotels & Resorts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Marriott Vacations Worldwide Corporation with a $84.57 average price target, representing a 31.0% upside. In a report issued on May 8, Truist Financial also maintained a Buy rating on the stock.
Mercadolibre (MELI)
In a report released yesterday, Andrew R. Ruben from Morgan Stanley reiterated a Buy rating on Mercadolibre, with a price target of $2850.00. The company's shares closed last Friday at $2450.00.
Mercadolibre has an analyst consensus of Strong Buy, with a price target consensus of $2751.25, implying a 13.5% upside from current levels. In a report issued on May 7, BTIG also maintained a Buy rating on the stock with a $2750.00 price target.
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15 hours ago
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Not Nearly Enough People Are Talking About MercadoLibre's Recent Earnings Report
Key Points This e-commerce company's growth remains impressive, with plenty of opportunity ahead. MercadoLibre is spending more now to ensure it wins its fair share of this future growth. Interested investors will want to make sure they enter a position with a true long-term mindset. 10 stocks we like better than MercadoLibre › You're probably aware of how the market's biggest companies fared last quarter. The biggest earnings reports, however, aren't necessarily the best we've seen. Many of this earnings season's most impressive numbers are coming from names that few people have even heard of, and even fewer are talking about yet. Case in point: MercadoLibre (NASDAQ: MELI). This profitable e-commerce outfit's top line soared 34% last quarter (up 53% on a constant-currency basis), extending a multi-year growth streak that's likely to persist at this pace for at least a few more. Better still, the stock didn't jump after the company posted its second-quarter numbers last Monday. They're down just a bit since then, in fact, translating into opportunity for investors looking for a reasonably valued growth stock. Here's the deal. A pretty solid Q2 If you've never heard of MercadoLibre, the most likely reason is that it doesn't do business in the United States. MercadoLibre's focus is exclusively on the Latin American market, and for now, mostly Brazil, Mexico, and Argentina. It's an e-commerce platform, although the description doesn't quite do it justice. It would be more accurate to describe it as a complete business ecosystem, offering everything from payment processing to banking to logistics to advertising, and, of course, a place to sell goods online. It's often referred to as the Amazon of Latin America, in fact, although even that comparison somehow seems to fall short of everything that MercadoLibre is. It's certainly growing like Amazon did during its early years. Last quarter's top line of just under $6.8 billion was 34% better than the year-earlier comparison, lifted by a 21% improvement in the number of merchandise sales it facilitated, and a 39% increase in the number of payments it handled. Indeed, despite offering a wide range of retail technology solutions, payments are actually its biggest business. Although the company doesn't provide guidance, the analyst community is looking for comparable revenue growth at least through 2027. Earnings growth is expected to keep pace too, improving from last fiscal year's $37.69 per share to $95.20 by the end of the three-year stretch. This begs the aren't more people talking about this amazing growth story? For that matter, how has this ticker been allowed to drift lower since its short-lived and relatively small surge following May's release of its first-quarter numbers? There's a reason -- just not a good one. Lots to like Obviously, there are no absolute certainties as to why a stock behaves as it does. There are only conjectures. Conjectures can be well-informed, though. In this case, the post-earnings buzz was focused on MercadoLibre's thinning profit margins. Sales grew well enough, but its costs grew a bit more, limiting last quarter's net income to only $10.31 per share versus analysts' expectation for a per-share profit of $11.93. Free shipping of online orders to more of Brazil's e-commerce customers was the key culprit, although several categories of expenditures -- including marketing -- grew more than a little during the company's fiscal second quarter. The short-term pain is worth the long-term gain There's something the market's not fully appreciating about MercadoLibre's relatively expensive decision to lower the minimum order threshold for free shipping. As MercadoLibre's commerce president (and future CEO) Ariel Szarfsztejn commented during the company's Q2 earnings conference call: "We just launched this [more free shipping] a few weeks back. So it's a bit early, but we definitely expect the trend that we see in traffic increases, conversion rate increasing, more engagement, more frequency to continue in the future. And with that, we expect to see orders going up, order sizes going up and so on." Let's not forget that such an investment in its future growth worked incredibly well for Amazon several years back. Right time, right place Perhaps the most exciting aspect of MercadoLibre's growth story has nothing to do with the company itself, and everything to do with the market it serves. In many ways, Latin America is now where North America was 20 years ago. Although online shopping had been around for a while by then, high-speed internet was still relatively new at that time, and broadband-connected smartphones were just starting to become the norm. That's a big reason Amazon's (and for that matter, the industry's) fastest and most explosive growth didn't materialize in earnest until around 2007, when the first iPhone debuted. Now, it's Latin America's turn. Although mobile phones and broadband connectivity have been offered in most of the region's major markets for a while, both are only just now becoming widely available and affordable. Market research firm Canalys says that smartphone shipments to Latin America grew 15% last year to reach a record high of 137 million units, versus a market population of nearly 670 million. Meanwhile, Cognitive Market Research predicts that South America's fiber-to-the-home market is set to grow at an average annual pace of 12.5% through 2030, underscoring the broadband connectivity newness and lingering lack of penetration in the region. As was the case in the U.S., it's not taking Latin America's consumers and companies long to figure out they can easily connect online. That's why AI-powered decision-intelligence software provider Parcel Perform believes the region's e-commerce market is set to grow at a brisk 19% per year through 2027. As the leader of the markets where it focuses its efforts, MercadoLibre is well-positioned to capture more than its fair share of this growth. The fact that these markets are currently highly fragmented only improves the opportunity to consolidate this business under one all-encompassing roof. Worth the wait Just because a company is doing all the right things well doesn't inherently mean its stock is always easy to own -- an idea proven by this stock since shortly after May's earnings report. MercadoLibre is still growing, and there's sound, proven reasoning for its sizable spending growth. Investors still aren't convinced, though, and they're dragging the stock lower due to their doubt. That's understandable. Just don't forget the brilliant observation that economist Benjamin Graham made in his 1949 book, The Intelligent Investor, which still applies today: "In the short run, the market is a voting machine but in the long run, it is a weighing machine." The recent weakness in MercadoLibre's shares is an emotionally driven "vote" against the company's profit-pinching decision to cast a wide net by offering more free shipping, and spending more on marketing. In the long run, shares will reflect the benefit of this investment that MercadoLibre's making in its own bright future. The stock's pricing disparity in the meantime spells opportunity for long-term-minded growth investors. Should you buy stock in MercadoLibre right now? Before you buy stock in MercadoLibre, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and MercadoLibre wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and MercadoLibre. The Motley Fool has a disclosure policy. Not Nearly Enough People Are Talking About MercadoLibre's Recent Earnings Report was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18 hours ago
- Yahoo
Prediction: Buying MercadoLibre Today Could Set You Up for Life
Key Points MercadoLibre is one of the world's fastest growing e-commerce companies. It has plenty of room to grow in Latin America. It still looks reasonably valued relative to its long-term growth potential. 10 stocks we like better than MercadoLibre › MercadoLibre (NASDAQ: MELI), Latin America's largest e-commerce company, went public at $18 a share in 2007. Today, its stock trades at about $2,330. That 12,844% gain would have turned a $10,000 investment into $1.29 million. From 2007 to 2024, MercadoLibre's annual revenue grew at a stunning CAGR of 38%. It established a first mover's advantage in Latin America's fertile e-commerce market, expanded its logistics network across the region's challenging terrain, and locked its shoppers into its Mercado Pago digital payments platform and other fintech services. MercadoLibre also turned profitable again in 2021, and its annual net income increased at a whopping CAGR of 184% over the following three years. Its profits surged as it sold more higher-margin products on its first-party marketplace, generated higher-margin revenue from its third-party marketplace, expanded its higher-margin credit and advertising segments, and leveraged its economies of scale to dilute its logistics, payment processing, and marketing expenses. Those growth rates are incredible, but some investors might be reluctant to buy MercadoLibre's stock after those multibagger gains. However, I believe buying MercadoLibre's stock today could still set you up for life for three simple reasons. 1. It hasn't saturated its core markets yet MercadoLibre operates its marketplace in 19 Latin American countries. However, it generates most of its revenue in Brazil, Argentina, and Mexico -- and it still has plenty of room to grow in smaller markets like Chile, Colombia, Peru, and Ecuador. At the end of 2024, MercadoLibre served more than 100 million annual unique active buyers and 60 million fintech monthly active users. But that's just a fraction of the 668 million people (including 451 million adults) who live in the Latin American and Caribbean region. Latin America's population is also expected to keep growing through 2050. That low penetration rate gives MercadoLibre plenty of room to expand its e-commerce and fintech platforms. Grand View Research expects Latin America's e-commerce market to grow at a CAGR of 16.7% from 2024 to 2030. IMARC Group predicts the region's fintech market will expand at a CAGR of 15.9% from 2025 to 2033. If MercadoLibre stays at the top of those booming markets, it will likely generate double-digit sales growth for the foreseeable future. 2. It's growing a lot faster than its overseas competitors From 2024 to 2027, analysts expect MercadoLibre's revenue and EPS to grow at a CAGR of 27% and 34%, respectively. That makes it one of the world's fastest-growing e-commerce companies. By comparison, analysts expect Amazon (NASDAQ: AMZN) and Sea Limited (NYSE: SE) -- which both tried in vain to challenge MercadoLibre in Latin America -- to grow their revenue at a CAGR of 11% and 21%, respectively, from 2024 to 2027. 3. It looks reasonably valued relative to its growth potential MercadoLibre's stock has already rallied nearly 40% this year, but it still doesn't seem too pricey relative to its e-commerce peers at 35 times next year's earnings. Amazon trades at 29 times forward earnings, while Sea trades at a higher forward multiple of 40. MercadoLibre's valuations are likely being compressed by the near-term concerns about tariffs, inflation, and political unrest across several of its top markets. The devaluation of Latin American currencies against the U.S. dollar (in which MercadoLibre reports its earnings) could be exacerbating that pressure. But if those headwinds eventually dissipate, MercadoLibre's stock could command a much higher valuation again. How much bigger could MercadoLibre grow? Assuming MercadoLibre matches analysts' expectations through 2027, grows its EPS at a robust CAGR of 20% over the following 18 years, and trades at a reasonable 30 times earnings by the final year, its stock price could potentially climb more than 30 times to $71,480 by 2045. That price target sounds high, but it would only boost its market cap to $3.6 trillion. For reference, Amazon currently has a market cap of $2.4 trillion -- and it will likely be worth a lot more in 20 years. Therefore, if you expect MercadoLibre to maintain its leading position in Latin America's e-commerce and fintech markets, expand its margins as it scales up its business, and weather the region's near-term macro headwinds, then it's still an excellent long-term buy. Should you invest $1,000 in MercadoLibre right now? Before you buy stock in MercadoLibre, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and MercadoLibre wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Leo Sun has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, and Sea Limited. The Motley Fool has a disclosure policy. Prediction: Buying MercadoLibre Today Could Set You Up for Life was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
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Prediction: These 2 Stocks Will Outperform the Market in the Next Decade
Key Points MercadoLibre and Uber lead their respective industries and deliver outstanding results. Both of these companies also have strong moats and substantial growth opportunities. 10 stocks we like better than MercadoLibre › Despite some challenges, broader equities have posted decent performances this year. MercadoLibre (NASDAQ: MELI) and Uber Technologies (NYSE: UBER) are two stocks that have performed even better than the market over the past seven months. As impressive as that may be, long-term investors will want to know whether these two companies can maintain that momentum over the long run. My view is that they can, and here is why. 1. MercadoLibre MercadoLibre is a leader in two rapidly growing industries: e-commerce and fintech. The company operates the largest online marketplace in Latin America where it has so far successfully fended off competition from major companies, including Amazon. MercadoLibre generates strong and growing revenue and profits. In the second quarter, the company's net revenue increased 34% year over year to $6.8 billion. The company's net income of $523 million declined slightly, partly due to currency-exchange rate fluctuations. Still, most other key metrics for the company went up, including items sold, gross merchandise volume (GMV), unique buyers, and fintech monthly active users (MAUs). The e-commerce specialist also benefits from a moat from multiple sources, including switching costs and the network effect. In other words, the business is strong. Despite concerns that the economy might falter due to President Trump's tariffs -- something that could impact its financial results -- the stock has performed well this year. Over the next decade, MercadoLibre could benefit from the increasing shift to online retail worldwide, including in Latin America where it operates. Though estimates vary, some analysts see a compound annual growth rate (CAGR) of 15.3% through 2035 for e-commerce. Perhaps it will grow even faster in areas where MercadoLibre operates. Only one of the company's major markets -- Mexico -- cracks the list of top 10 countries worldwide by e-commerce penetration, with a rate of 14.2%, which significantly trails the leaders at the top of this list. Other regions where MercadoLibre is well established, such as Brazil, are less mature markets than Mexico. In other words, this will be a massive tailwind for MercadoLibre. Even with mounting competition from players like Shopee, backed by Sea Limited, and potential political instability, MercadoLibre should be fine. The company has faced and overcome these challenges before, and its moat should allow it to remain the leader of the pack. In short, the stock is well positioned to deliver superior returns through 2035. 2. Uber Technologies Uber has become a household name thanks to its ultrapopular ride-hailing and food-delivery services. The company has achieved the feat of becoming a verb thanks to its brand name being synonymous with ordering a ride on an app, sometimes even if it is on one of its competitors' services. That's nice enough, but more importantly for investors' purposes, Uber is delivering excellent financial results. In Q2, the company's total trips increased by 18% year over year to 3.3 billion, while its revenue rose to $12.7 billion, 18% higher than the same period last year. Long gone are the days of unprofitable growth for Uber. On the bottom line, the company reported a net profit of $1.4 billion, up 33% year over year, while its free cash flow increased by 44% year over year to $2.5 billion. Uber is firing on all cylinders. And there is plenty more where that came from. Member growth should continue, considering Uber ended Q2 with 180 million monthly active consumers. While that grew 15% year over year, it still represents a small fraction of the population in the regions where it does business. Uber's major markets are still severely underpenetrated, granting the company significant long-term growth potential to bring more people into its ecosystem, increase trips and gross bookings, as well as revenue and earnings. And while competition remains fierce, Uber has built a network effect which, along with its brand name, grants it a moat. Lastly, although the rise of self-driving vehicles could pose a threat, Uber has taken the lead by partnering with Waymo, a leading company in this niche. With excellent financial results, multiple growth paths, and a moat, the stock could be a major winner over the next decade. Should you invest $1,000 in MercadoLibre right now? Before you buy stock in MercadoLibre, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and MercadoLibre wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* Now, it's worth noting Stock Advisor's total average return is 1,070% — a market-crushing outperformance compared to 184% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Prosper Junior Bakiny has positions in Amazon and MercadoLibre. The Motley Fool has positions in and recommends Amazon, MercadoLibre, Sea Limited, and Uber Technologies. The Motley Fool has a disclosure policy. Prediction: These 2 Stocks Will Outperform the Market in the Next Decade was originally published by The Motley Fool
