I am a huge fan of Big Tech, not just for the money that those stocks have made me and my subscribers, but also because this is where the innovation, technological prowess and unrivaled Silicon Valley brain power reside, asserts Jim Woods, editor of Intelligence Report.
Moreover, this is where the big earnings growth resides. Of course, technologic savvy, innovation and big brain power aren’t just found in Silicon Valley and other U.S. tech hotbeds. Sometimes, the tech is south of the border, and sometimes it’s in South America.
Let me ask you this: How would you like to own Amazon (AMZN), Etsy (ETSY), PayPal (PYPL), and eBay (EBAY) all in one stock — and in a stock that’s outpaced 95% of all other stocks in the market with a gain of some 193% in 2020? That’s what you get with Latin American e-commerce giant MercadoLibre, Inc. (MELI).
This company is sometimes called the “Amazon of Latin America,” because it’s that region’s leading e-commerce platform. MELI operates in 18 countries spanning from the company’s home base in Argentina to Mexico.
This company is part online marketplace, part fintech and part e-commerce retailer. You see, in addition to being a storefront for Latin American retailers, it also sells its own items. Plus, it provides the payment facilitation to get the transactions done.
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All of this adds up to a stock with multiple bullish “NewsQ,” i.e., a term I developed to describe the confluence of news-related and secular-trend related tailwinds pushing a stock forward. One strong bit of positive NewsQ here is the demographic tailwind of a rapidly growing Latin American middle class.
In November, MercadoLibre posted its most-recent earnings results, which the company said came in at 28 cents per share in Q3, a metric that easily beat estimates for earnings per share (EPS) of just 8 cents.
Moreover, the top line also was impressive, with revenue in the quarter up some 85% year over year. Look for more of this kind of strong fundamental performance in 2021 — and look for more market-crushing gains in MELI shares.
Meanwhile, my Top Pick from last year was human resources software firm Paycom Software (PAYC). The stock was up a very robust 71% in 2020, which was remarkable given the constrictive COVID climate and the squeeze it put on so many businesses. The success of Paycom shows the resilience of a great enterprise with an outstanding product that adds to it customers’ bottom lines.