11 Best Stocks to Invest in for Long Term Growth

3. MercadoLibre, Inc. (NASDAQ:MELI)

EPS Forward Long Term Growth (3-5 Year CAGR): 31.43%

Number of Hedge Fund Holders: 116

MercadoLibre, Inc. (NASDAQ:MELI) is one of the best stocks to invest in for long-term growth. On August 7, JP Morgan analyst Marcelo Santos maintained his Neutral rating on MercadoLibre, Inc. (NASDAQ:MELI), while increasing the price target from $2600 to $2700. That is a 14.9% implied upside from the current price of $2350.

The analyst updated the company’s estimates post the Q2 earnings report on August 4. MercadoLibre reported revenue of $6.79 billion, beating analysts’ estimates of $6.67 billion, and growing 33.9% year-over-year. The company’s growth can be attributed to improving momentum in the e-commerce and fintech segments.

The company’s strategy to lower the free shipping threshold in Brazil seems to be paying off.  It also expanded its logistics in Mexico, the second biggest Latin American market. MELI is gaining solid momentum in Mercado Pago, its digital payment platform, which saw 91% year-over-year growth in its credit portfolio.

Santos remains Neutral on the stock, though, citing that the Argentine e-commerce giant is entering a phase of higher competition after two years of “relatively calm markets” in Brazil. The company’s forward P/E ratio stands at a rich 49.99x. However, the implied average Wall Street upside on the stock is 22.3%.