13 Most Promising Fintech Stocks to Buy

6. MercadoLibre, Inc. (NASDAQ:MELI)

Average Upside Potential: 8.97%

Number of Hedge Funds: 84

MercadoLibre, Inc. (NASDAQ:MELI) is a leading fintech and e-commerce company in Latin America. The company has been democratizing commerce and financial services for 25 years. It has a presence in 18 countries including Argentina, Brazil, Mexico, Colombia, Chile, Colombia, and Peru.

MercadoLibre, Inc. (NASDAQ:MELI) has emerged to be one of the leading fintechs in the region with its ecosystem as its competitive advantage. With financial services ripe for disruption in the firm’s markets, it successfully operates a fintech business that matches the lowest cost-to-serve in the region. Mercado has positioned itself well for market share gains across the region’s fintech landscape. Other than fintech, it operates as an e-commerce market leader in Latin America. Overall, the firm has a diversified mix of revenue with ample room for growth.

The firm delivered a good fiscal second quarter. The revenue increased by 42% year-over-year with a 20% increase in gross merchandise volume and a 36% increase in total payment volume. Net income climbed 103% as compared to the prior year period. The strength of MercadoLibre, Inc. (NASDAQ:MELI) across its geographies is evident from revenue growth of 51% year-over-year in Brazil, 66% year-over-year in Mexico, and 36% year-over-year increase in its Others segment. The Commerce and Fintech revenue streams continue to grow, with 53% and 28% increases since 2023 respectively.

A large scale, a diversified mix of revenue, and low-cost structures with solid and sustainable profitability deem MercadoLibre, Inc. (NASDAQ:MELI) an attractive fintech stock. As of September 30, the stock has an average upside potential of 8.97%.