Key Insights
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Sellers seem to have overreacted regarding PepsiCo, a major player in beverages and snacks.
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The toxicity of social media is pushing users towards platforms that offer a safer experience.
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E-commerce continues to present significant growth potential.
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No need to worry. I believe I can assist. Below is an overview of five stocks I’ve been monitoring that have emerged as my top picks, which I believe will appeal to various investors.
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1. PepsiCo
PepsiCo(NASDAQ: PEP) has notably lagged behind its competitor Coca-Cola since late 2023 due to persistent inflation challenges.
While Coca-Cola outsources expensive bottling operations to third-party partners, PepsiCo handles most production in-house, leading to higher operational costs.
Furthermore, it’s fair to acknowledge that Coca-Cola enjoys a bit more pricing power compared to PepsiCo’s snack sector. Despite the challenges, the pressure on PepsiCo’s profit margins doesn’t genuinely threaten the stock’s viability, contrary to the 30% drop from its peak in 2023. This decline has, in fact, benefited investors, pushing the forward dividend yield to 4.2%, bolstered by 53 consecutive years of dividend increases.
2. AppLovin
Have you heard of AppLovin(NASDAQ: APP)? It may not be well-known, but chances are you or someone in your household has used its services.
AppLovin specializes in helping app developers promote their products, turning digital marketing into a blend of art and science. Its innovative approach has generated projected revenue growth of over 21% this year, with expectations to maintain this momentum through 2027. The company is also on a profitability trajectory, with profits per share anticipated to surge from $4.53 last year to more than $14.00 by 2027.
Despite facing scrutiny from short-seller Muddy Waters regarding its advertising technology, the stock has recovered from a downturn, indicating resilience.
3. Snap
When Snap(NYSE: SNAP) debuted on the stock market in 2017, investor skepticism was high, particularly with established giants like Twitter and Meta Platforms‘ Facebook dominating the space.
However, Snapchat has steadily advanced in terms of revenue, profitability, and active users, hitting a record 460 million daily users in the first quarter. The company is also clearly adapting to feedback and exploring new avenues of growth, appealing to users drawn to its less toxic atmosphere compared to larger platforms.
4. MercadoLibre
You may not be familiar with MercadoLibre(NASDAQ: MELI), but it’s a prime opportunity for growth.
This platform is dubbed the Amazon of Latin America, providing an extensive e-commerce solution that includes payment processing and delivery logistics. Last year, it facilitated $51.5 billion in sales and managed nearly $200 billion in digital payments, showcasing significant year-on-year growth.
The e-commerce landscape in Latin America is rapidly evolving, mirroring North America’s trajectory two decades ago. Forecasts suggest the region’s e-commerce market could double by 2027, with MercadoLibre positioned to capture a significant share.
5. Alibaba
Lastly, I recommend Alibaba(NYSE: BABA), a leading force in Chinese e-commerce with platforms like Taobao and Tmall.
Beyond e-commerce, Alibaba has diversified into digital entertainment, logistics, and cloud computing, including a powerful AI tool named Qwen. Despite trade tensions with the U.S., Alibaba is thriving, as shown by its sustained growth amidst improving retail spending in China.
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