5 Best Inflation-Proof Stocks

3. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 74  

MercadoLibre, Inc. (NASDAQ:MELI) is an ecommerce firm based in Argentina. It is one of the largest companies in Latin America and thus possesses incredible pricing power, an advantage that can be put to good use during times of inflation. The firm recently posted earnings for the third quarter, reporting earnings per share of $1.92, beating market estimates by $0.63. The revenue over the period was $1.8 billion, up 61% year-on-year. 

Barclays analyst Trevor Young recently kept an Overweight rating on MercadoLibre, Inc. (NASDAQ:MELI) stock and raised the price target to $2,200 from $2,100, underlining that the firm was “executing on all fronts”. 

At the end of the second quarter of 2021, 74 hedge funds in the database of Insider Monkey held stakes worth $4 billion in MercadoLibre, Inc. (NASDAQ:MELI), up from 69 in the previous quarter worth $5 billion.

Baron Funds, in its Q1 2021 investor letter, mentioned MercadoLibre, Inc. (NASDAQ:MELI). Here is what the fund has to say in its letter:

“MercadoLibre, Inc., a Latin American e-commerce and FinTech platform, declined in the quarter despite reporting very strong fourth quarter results. MercadoLibre falls into a category of businesses that were net beneficiaries of last year’s lockdowns and reduced consumer gatherings that fell out of favor this quarter as investors looked toward economic reopening and normalization. We are confident in MercadoLibre’s ability to create substantial long-term value as it grows into a regional powerhouse across e-commerce and financial services.”