Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Here's My Top Stock to Buy and Hold -- No Matter When There's a Coronavirus Vaccine

By Danny Vena - Dec 9, 2020 at 3:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It all comes down to opportunity and tailwinds.

The stock market has changed gears in recent weeks. Where investors were recently prioritizing remote work and stay-at-home stocks, they're now focusing on equities that could win in a post-pandemic future. Sometimes, however, you really can have the best of both worlds. 

On this episode of Fool Live that aired on Nov. 16, "The Wrap" host Jason Hall and contributor Danny Vena discuss Latin American e-commerce powerhouse MercadoLibre ( MELI -6.75% ) and why it could win no matter what.

Jason Hall: Danny, you got a good one here. There is a little e-commerce website down in South America, nothing big.

Danny Vena: Yeah. People who have been following me for the last decade or so on the boards or here on Fool Live or through my articles, may have heard of a little company called MercadoLibre. This is a company that I'm extremely bullish on and have been for some time.

But essentially, there are a couple of tailwinds. They are the largest provider of e-commerce services in Latin America. They have the largest platform. In addition to that, they are also one of the largest providers of digital payments in Latin America.

The company was already doing remarkably well even before the pandemic. Again, what we've seen is the number of people adopting e-commerce, the number of people adopting touchless payments and digital payments has accelerated, and they are at the intersection of the two.

What I really like about the company, I mean, there are so many things to like, but one of the biggest catalyst's is the fact that they have twice as many consumers in Latin America than they do here in the United States. So that means that just from the ground up, they have twice as big a marketplace as we do.

Earlier this year, they started off and the economy was only about 4% of total retail purchases were made e-commerce/online. That number has jumped up into the low-to-mid-teens. There are so many reasons that I think that Mercado Libre will be great going forward. So I would say buy now and you'll be glad that you did 5-10 years from now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Mercadolibre, Inc. Stock Quote
Mercadolibre, Inc.
$1,052.95 (-6.75%) $-76.27

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/05/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.