5 Best Fast Growth Stocks to Buy Now

1. MercadoLibre, Inc. (NASDAQ:MELI)

Number of Hedge Fund Shareholders: 68

Topping the list of fast growth stocks to buy now is Latin American e-commerce giant MercadoLibre, Inc. (NASDAQ:MELI), whose shares are down 26% this year despite the company’s exceptional ongoing growth. MercadoLibre grew revenue by over 75% in 2021 to $7.07 billion and is on track to top $10 billion in sales this year.

The company has also become profitable within the last two years, growing operating income by nearly 5x during that period, while gross profit has nearly tripled to $4.56 billion over the trailing twelve months. One of the strongest growth and profit drivers for the company is its fintech business, which grew revenue by 115% during Q3 to account for 45% of overall sales.

Hedge fund ownership of MercadoLibre, Inc. (NASDAQ:MELI) has trended down over the past seven quarters, declining by 19% during that time. Despite that, the stock still ranks as the most popular fast growth stock among hedge funds. Cathie Wood’s ARK Investment Management owned 89,280 MELI shares on September 30, while David Blood and Al Gore’s Generation Investment Management owned the largest non-options long position in MercadoLibre as of June 30, holding 515,645 shares worth over $328 million.

Polen Capital likes MercadoLibre, Inc. (NASDAQ:MELI)’s disciplined aggression and sees a long runway of growth ahead for the company, as revealed in the fund’s Q3 2022 investor letter:

“MercadoLibre, Inc. (NASDAQ:MELI), a leading e-commerce marketplace and payments platform in Latin America, delivered better-than-expected results amidst a challenging backdrop. These results highlighted particularly robust results in their fintech segment, Mercado Pago, which surpassed $30 billion in total payment volume. Management has struck the right balance between being disciplined on margins given the macro backdrop, but also investing where appropriate as the company is in a much better financial position than many competitors, based on our research. We believe structural tailwinds like the transition to e-commerce and digital payments will continue to drive growth long term.”

For more of the latest stock picks worth considering for your portfolio, check out 11 Best Mineral Stocks To Buy Now and 11 Safe Stocks To Invest In.

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