1 Growth Stock to Buy Before the End of July
2026-07-19 07:15
•Catie Hogan •The Motley Fool
••••• •• Axe Capital view
Buy MercadoLibre for Growth Exposure Outside SA
Despite near-term pressure, MercadoLibre’s growth story fits patient investors willing to look beyond South Africa.
MercadoLibre (MELI) is down nearly 25% this year, but don’t let that put you off—its latest numbers show revenue growing almost 50%, and its fintech arm’s assets soared 77%, highlighting strong underlying demand in Latin America’s e-commerce and payments space. The company is investing aggressively in logistics and credit expansion, which is weighing on margins now but should pay off long term. For South African investors craving growth outside the JSE’s limited options, MELI offers exposure to an emerging region with Amazon-like potential. Currency volatility in the USD/ZAR and local Latin American FX movements could cause bumpy rides, and regulatory risks in the region remain real headwinds. But if you’re comfortable with those, MercadoLibre is worth a look. Just remember, emerging market growth stocks often require patience. this is just my opinion and not financial advice
Buy MercadoLibre on dips for growth exposure beyond SA markets. Avoid chasing if you need short-term gains due to volatility risks.
- MELI
- USD/ZAR
- Latin America regulatory uncertainty
- Currency swings between USD and Latin American currencies affecting MELI’s earnings
5/10
MercadoLibre (MELI), the Latin American e-commerce and fintech giant, is recommended as a discounted growth stock despite being down 23% over the past 12 months. The company reported 49% revenue growth and 77% growth in assets under management for its fintech arm in Q1 2026, with margin pressure attributed to strategic investments in logistics and credit expansion. The analyst believes MercadoLibre will become the Amazon of Latin America, though regulatory and currency volatility risks remain.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Catie Hogan
Categories: Equities, Earnings, Financials, Consumer, Retail
Tickers: MELI, AMZN
Sentiment: Positive - Strong revenue growth (49%) and fintech asset growth (77%) in Q1 2026, with margin pressure attributed to strategic long-term investments. Stock trading at a discount (down 23% YTD) presents a buying opportunity for patient investors. Analyst projects significant long-term growth potential as the Amazon of Latin America. Mentioned only as a comparison point for MercadoLibre's potential future trajectory. No direct analysis or sentiment expressed about Amazon itself.
Keywords: growth stock, e-commerce, fintech, Latin America, emerging markets, revenue growth, margin pressure, strategic investments
Insights:
- MELI: Positive: Strong revenue growth (49%) and fintech asset growth (77%) in Q1 2026, with margin pressure attributed to strategic long-term investments. Stock trading at a discount (down 23% YTD) presents a buying opportunity for patient investors. Analyst projects significant long-term growth potential as the Amazon of Latin America.
- AMZN: Neutral: Mentioned only as a comparison point for MercadoLibre's potential future trajectory. No direct analysis or sentiment expressed about Amazon itself.
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