2 Growth Stocks Wall Street Predicts Will Rally More than 85%

Strong consumer spending and favorable government policies have aided a growth stock rally so far this year as the global economy recovers from its pandemic-led slump. Though most European nations have re-imposed lockdowns and restrictions in the wake of a resurgence of COVID-19 cases, the White House has said that it has no intention of shutting down the U.S. economy because 82% of the U.S. population has one shot or more of the vaccine. This should instill confidence in the markets and allow growth stocks to gain momentum in the coming months…

Growth stocks tend to outperform the market in times of economic recovery. This is evident in the SPDR Portfolio S&P 500 Growth ETF’s (SPYG) 29% returns over the past nine months.

Thus, Wall Street analysts expect MercadoLibre Inc. (MELI – Get Rating) and Stitch Fix Inc. (SFIX – Get Rating), which possess solid growth attributes, to rally by more than 85% in the near term.

MercadoLibre Inc. (MELI – Get Rating)

MELI, which is headquartered in Vicente Lopez, Argentina, provides online commerce platforms in Latin America. It runs the MercadoLibre Marketplace, an automated online commerce platform that allows businesses, merchants, and individuals to list merchandise, conduct sales, and purchases online, and the Mercado Pago FinTech, a financial technology solution platform that facilitates transactions on and off its marketplaces by allowing users to send and receive payments online.

In August, MELI announced the acquisition of Kangu, a Brazilian logistics company with operations in Brazil, Colombia, and Mexico. This acquisition is consistent with the platform’s aim of boosting investment across its logistics network to improve seller productivity and provide the fastest delivery times in Brazil to its thousands of clients.

MELI’s net revenue increased 86.6% year-over-year to $4.94 billion in the third quarter ended September 30, 2021. Its operating income grew 173.1% from the prior-year quarter to $417.39 million. The company’s net income surged 159.5% from its  year-ago value to $129.41 million, while its EPS increased 176.6% year-over-year to $2.60. Its revenue and total assets have grown at CAGRs of 66% and 49.9%, respectively, over the past three years.

The company’s EPS is expected to…

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