TSMC (TSM): New Buy Recommendation for This Technology Giant
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According to TipRanks, Li is a 5-star analyst with an average return of 26.5% and a 67.57% success rate. Li covers the Technology sector, focusing on stocks such as Micron, TSMC, and United Micro.
TSMC has an analyst consensus of Strong Buy, with a price target consensus of $269.00, which is a 12.61% upside from current levels. In a report released on August 13, Bank of America Securities also reiterated a Buy rating on the stock with a $290.00 price target.
The company has a one-year high of $248.28 and a one-year low of $134.25. Currently, TSMC has an average volume of 11.21M.
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Globe and Mail
3 hours ago
- Globe and Mail
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 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 10 best stocks 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. 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Globe and Mail
7 hours ago
- Globe and Mail
UPS vs. Whirlpool: 2 High-Yield Stocks That Crashed, but Only one Is a Buy
Key Points Both UPS and Whirlpool's stocks are on multiyear downtrends, raising their yields. Whirlpool has cut its dividend in response, but UPS hasn't. However, UPS will likely feel a bigger negative impact from tariffs. 10 stocks we like better than United Parcel Service › Do you like bargain-priced stocks? How about bargain-priced dividend stocks? How about bargain-priced dividend stocks that you've actually heard of? Well, you're in luck! The stocks of two iconic American brands are currently sitting in the bargain bin. The companies are shipping behemoth UPS (NYSE: UPS) and appliance maker Whirlpool (NYSE: WHR). Both stocks have been slowly sinking for years, with share prices now down more than 60% from their all-time highs! Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Both stocks fell again -- by more than 15% -- after their recent second-quarter earnings reports, but one looks more likely to recover. Only one cut its dividend Both UPS and Whirlpool have long histories of paying and regularly increasing their dividends. By July, their share-price slumps had pushed both of their dividend yields above 7%. A yield that high is tempting, but neither company was on track to generate enough free cash flow to cover it. When a company can't cover its dividend with free cash flow, it has to dip into the cash on its balance sheet, take on additional debt, or find some other way to fund the payout. UPS is going to try to make it work somehow, according to CEO Carol Tome on the Q2 earnings call. She told investors, "You have our commitment to a stable and growing dividend." That means the company will be on the hook for at least $5.5 billion in dividend payouts this year, which seems almost certain to exceed its free cash flow for the year. That keeps UPS's yield high for now, but investors should remember that there's no guarantee the company's position won't change without warning, resulting in a surprise dividend cut. Whirlpool, on the other hand, cut its annual payout in half from $7 per share to $3.50 per share. That means its yield is now much lower than UPS's (4% vs. 7.5%), but its $190 million total payout is also much more manageable, making its dividend more sustainable over the long term. It also means the dividend cut is baked into the company's current share price, whereas if UPS makes a cut, its stock price will probably sink even lower in response. The ups and downs of tariffs UPS and Whirlpool are both bracing for the impact of tariffs, but in different ways. For UPS, the tariffs are a huge risk. They will likely cause imports to decline, resulting in lower shipping volumes. With some tariffs kicking in just as the labor market shows signs of weakness, they could negatively impact overall consumer spending (and thus, shipping) during the critical holiday shopping season. On the other hand, the tariffs may actually help Whirlpool by hurting its foreign competitors like LG, Samsung, and Haier. The Trump administration has proposed high tariffs on countries that happen to export lots of large appliances to the U.S. These include South Korea (25%), Thailand (36%), Vietnam (46%), and China (as high as 145%). Many of these rates are in flux, but even if they end up at 10% or 15%, it will still give Whirlpool, which manufactures more than 80% of its products in the U.S., a big pricing advantage. Although UPS's yield may now be higher than Whirlpool's, its prospects are looking dimmer thanks to economic factors outside of its control. Meanwhile, even after its dividend cut, Whirlpool still offers a decent yield and a compelling valuation. If I were to pick one, I'd go with Whirlpool hands down. Should you invest $1,000 in United Parcel Service right now? Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and United Parcel Service 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
Globe and Mail
7 hours ago
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1 Unstoppable Artificial Intelligence (AI) Stock to Buy Before Aug. 27
Key Points Domestic AI hyperscalers are increasing their data center capital expenditure plans. A 15% tax for access to the Chinese market is a small price to pay for Nvidia. 10 stocks we like better than Nvidia › Nvidia (NASDAQ: NVDA) has been one of the must-own artificial intelligence (AI) stocks since the arms race kicked off in 2023. It produced incredible returns in both 2023 and 2024, although 2025 has been a bit of a "slow" year for Nvidia's stock, rising around 35% so far. However, all of that could change on Aug. 27 when Nvidia reports Q2 results. There is going to be some interesting commentary made regarding exports to China that could send shares soaring, especially with news of Nvidia paying a 15% export tax on its products. Still, the return of the Chinese markets for Nvidia cannot be understated, and I think it will be a massive catalyst for the stock following the results. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nvidia's domestic demand is growing Nvidia makes graphics processing units (GPUs), which are the most popular computing units for performing difficult tasks, such as engineering simulations, mining cryptocurrency, and training AI models. Nvidia's dominance in the data center market share is incredible, with many estimates setting its market share at 90% or greater. The data center market has been booming thanks to rising demand from AI hyperscalers, like Meta Platforms (NASDAQ: META) and Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). During each company's Q2 earnings call, each told investors to expect capital expenditure growth for 2026, mainly focused on data center buildout. These data centers are being filled with high-powered computing units, with many of them coming from Nvidia. With this outlook rising, it bodes well for Nvidia's stock in the near and short-term, encouraging investors that domestic GPU demand is still strong. But it's also looking strong overseas. A unique deal to gain access to China could mean huge growth for Nvidia In April, the Trump administration revoked Nvidia's export license for H20 chips, which were specifically designed to meet export restrictions to China. That caused Nvidia to miss out on $2.5 billion in revenue for Q1, but also required Nvidia to pull revenue guidance from H20 chips for Q2. Still, management projected 50% revenue growth to $45 billion for Q2, but that figure would have been 77% to $53 billion if projected H20 sales were included. However, it seems like China's market is back in play with Nvidia's export license set to be approved, and the company likely needs to pay a 15% export tax on the GPUs it sells. This would eat into the margins Nvidia has on these chips, but some sales are better than no sales. Nvidia is well positioned to profit from the increased business in China, which will provide a boost for Nvidia. We'll have to see what CEO Jensen Huang says regarding the progress of these deals and how they affect the company moving forward. Nvidia's Q3 has already started, so it won't be able to enjoy a full quarter of H20 sales, but it could still be a positive benefit to the company in the back half of the quarter. Nvidia has two positive growth catalysts going for it right now, and none working against it. This could cause management to guide for revenue reacceleration, which would likely send shares soaring. Additionally, Nvidia's stock may not be cheap, but it's still valued at a lower level than it was at this point last year. NVDA PE Ratio (Forward) data by YCharts This could open up the door to the stock popping following its earnings announcement, and buying shares today ensures that you get in on that action. However, I still think there's an excellent long-term investing opportunity here, and even if you wait until after the earnings announcement, Nvidia will likely maintain its status as one of the top stocks to buy. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia 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 Keithen Drury has positions in Alphabet, Meta Platforms, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy.
