MercadoLibre, known as “the Amazon of Latin America,” may provide a choice buying opportunity after its 52% decline from its peak, contends an article in CityWireUSA’s Fix the Future column.
Many top investors are getting in on the company, Fix the Future found, as the company builds on its success with its e-commerce business by expanding into growth markets like fintech. With over 40 million customers, MercadoLibre also has a brand-name reputation that makes them attractive to investors, including top portfolio managers such as Herve van Caloen of the Mercator International Opportunity fund and Mark Baribeau of Jennison Associates.
MercadoLibre has a strong balance sheet, van Caloen says—an important quality in the face of rising interest rates and high inflation. Fix the Future dug into the holdings of the top 421 fund managers to uncover other companies with cash-rich balance sheets. Most of the companies they found are in the tech sector, which have strong growth records and solid balance sheets alongside attractive valuations. Growth stocks are now “cheap” and poised for “a comeback,” Baribeau told CityWireUSA.
Some of the standout picks Fix the Future found include well-known tech company Texas Instruments, which has grown its dividend nearly 500 times over in the last 20 years and whose shares are currently yielding 3%, and that the French beverage company Pernod Ricard, Nippon Telegraph and Telephone, and the high-yielding shares in TotalEnergies, which were among Baribeau’s favorite stocks, offered safe dividends.