5 Stocks to Buy Now Before the Bull Market Begins

4. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Holders: 63

Share Price Decline YTD as of August 16: 20.95%

MercadoLibre, Inc. (NASDAQ:MELI) operates online commerce platforms in Latin America. The stock has plummeted about 21% year to date as of August 16, however, as consumer spending increases, the e-commerce industry is bound to get a boost. This will help MercadoLibre, Inc. (NASDAQ:MELI) stock to recover. On August 3, MercadoLibre, Inc. (NASDAQ:MELI) reported its Q2 results, announcing an EPS of $2.43 and a revenue of $2.60 billion, outperforming Wall Street consensus by $0.50 and $90.17 million, respectively. 

On August 8, JPMorgan analyst Marcelo Santos raised the price target on MercadoLibre, Inc. (NASDAQ:MELI) to $1,350 from $1,300 and maintained an Overweight rating on the shares. The analyst lifted estimates on MercadoLibre, Inc. (NASDAQ:MELI) after its Q2 results, factoring in a robust profitability outlook from credit operations, which he said are demonstrating strong economics. The analyst is confident that MercadoLibre, Inc. (NASDAQ:MELI) will retain its leading position in Latin America e-commerce.

Among the hedge funds tracked by Insider Monkey, David Blood and Al Gore’s Generation Investment Management is the largest stakeholder of MercadoLibre, Inc. (NASDAQ:MELI), with 441,529 shares worth $525.19 million. Overall, 63 hedge funds were bullish on the stock at the end of Q1 2022.