10 Best Stocks to Buy and Hold For 2 Years

7. MercadoLibre, Inc. (NASDAQ:MELI)

3-Years Sales Growth: 43.24% 

Number of Hedge Fund Holders: 96

MercadoLibre, Inc. (NASDAQ:MELI) is a leading fintech and e-commerce company based in Argentina. It primarily offers various services through its platforms including Mercado Libre Marketplace, Mercado Pago, Mercado Envios, and more. Its platforms enable sellers and buyers to engage in retail and wholesale commercial transactions.

On March 17, Morgan Stanley analyst Andrew R. Ruben maintained a Buy rating on the stock, highlighting that the company has developed a strategic position in the market with the potential to expand in the Latin American market. Ruben also noted that MercadoLibre, Inc. (NASDAQ:MELI) is focused on improving its logistic capabilities and is investing in its fintech and e-commerce platforms to gain market share, despite the competitive pressure.

Moreover, during the fiscal third quarter of 2024, MercadoLibre, Inc. (NASDAQ:MELI) demonstrated strong performance in gross merchandising value (GMV), total payment volume, and credit portfolio. All of which led to the company outpacing the markets in Argentina, Brazil, and Mexico. In addition, the improvements in value proposition resulted in growth in unique buyers, which surpassed 100 million during the quarter. During fiscal 2024, MercadoLibre, Inc. (NASDAQ:MELI) generated $21 billion in revenue and more than $1 billion as free cash flow, making it one of the best stocks to buy and hold for 2 years.

Hardman Johnston Global Equity stated the following regarding MercadoLibre, Inc. (NASDAQ:MELI) in its Q4 2024 investor letter:

“The top individual detractors from relative performance were MercadoLibre, Inc. (NASDAQ:MELI), IQVIA, and Universal Display Corp. MercadoLibre struggled due to a combination of fundamentals and an increasingly challenging macroeconomic environment in its primary regions, predominately Brazil. The issue within fundamentals was related to a shortfall in operating margins, as the company significantly invested across its platforms, with the addition of six new fulfillment centers aimed at regionalizing its distribution network to better serve and retain its commerce customer base and expand its credit card offering. While these investments caused a negative reaction in the stock’s share price, the company has consistently demonstrated effective capital allocation in support of its medium and long term growth. Outside of the company’s control, the outlook for inflation in Brazil deteriorated throughout the year, weighing on equities across the region. We continue to monitor the region’s macroeconomic backdrop as a key investment risk for MercadoLibre, but we view the company as a best-in-class operator that will emerge in a better position on the other side of a macro recovery.”