Key Takeaways:
- MercadoLibre dominates e-commerce and digital payments in Latin America, with analysts expecting 20-30% annual earnings growth.
- Michael Burry’s recent purchase of Estée Lauder stock signals confidence in a long-term rebound for the company.
- Zeta Global is a high-growth marketing technology company that is growing earnings at 30% annually. Analysts see nearly 100% upside today.
- Get accurate financial data on over 100,000 global stocks for free on TIKR >>>
While short-term trends come and go, great businesses continue to grow earnings over time and can make excellent long-term investments.
Here are three stocks that look undervalued today that can become great buy-and-hold stocks for the next decade.
The first two stocks look interesting, but stock #3 has higher risk with the potential for higher reward.
1: MercadoLibre (MELI)
MercadoLibre dominates in industries like e-commerce, digital payments, and online marketplaces in Latin America.
These industries are still in the early stages of adoption in Latin America, which gives MercadoLibre plenty of room to expand.
Right now, analysts have an average price target of about $2,400/share, which means the stock is about fairly valued today.
However, revenue and earnings are expected to grow at 20-30% annually over the next few years.
Over the long-term, a company’s stock price tends to follow its earnings-per-share.
The business could see excellent growth over the next decade, which could lead to strong long-term returns.
MercadoLibre is a high-quality business with long-term upside, but Stock #3 could be more interesting.
Analyze stocks quicker with TIKR >>>
2: Estée Lauder (EL)
Estée Lauder is one of the most recognizable premium beauty brands, selling high-margin skincare, makeup, and fragrance products through brands like MAC, Clinique, and La Mer.
The stock has fallen about 50% this year, largely due to weak sales in China.
However, there are signs of a turnaround:
One company insider recently purchased nearly $25 million of the stock, which showed confidence in a recovery.
On top of that, Michael Burry’s Scion Asset Management started a new position in Estée Lauder last quarter.
Estée Lauder is a premium brand with long-term staying power, making it an interesting buy-and-hold stock.
See what stocks top investors are buying with TIKR >>>
3: Zeta Global (ZETA)
Zeta Global is a marketing technology company that helps businesses find and retain customers using AI-powered customer data.
With a market cap of under $5 billion, this is the riskiest stock on this list.
But, it could have the most upside.
Zeta operates a cloud-based marketing platform with data on over 2.5 billion consumer profiles, allowing businesses to improve their digital advertising strategies.
Right now, the stock trades at $22 per share, but analysts have an average price target of $37, which means they think the stock could nearly double today.
The business is expected to continue growing revenue and earnings at about 30% annually, but today it trades below 30 times expected earnings:
Since a company’s stock price tends to follow earnings over the long term, so it wouldn’t be unreasonable for Zeta’s stock price to grow alongside earnings.
Additionally, the stock could trade at a P/E ratio closer to 40 or 50 if the business continues to grow earnings at 30% annually.
Zeta Global looks like the most undervalued stock on this list, but it’s also the riskiest. For that reason, it could be a nice buy-and-hold stock for the right type of investor.
Find high-quality, undervalued stocks today with TIKR >>>
TIKR Takeaway
Buy-and-hold investing is all about owning great businesses that can grow over time.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks and was built for investors who think of buying stocks as buying a piece of a business.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. We aim to provide informative and engaging analysis to help empower individuals to make their own investment decisions. Neither TIKR nor our authors hold positions in any of the stocks mentioned in this article. Thank you for reading, and happy investing!
