In today's video, I look at Zillow Group (ZG +0.28%) (Z 1.30%), MercadoLibre (MELI +3.74%),and Social Capital Hedosophia Holdings Corp. V (IPOE +0.00%), the SPAC that will merge with SoFi. These three growth stocks are down over 20% from their 52-week highs, and below I share three reasons why you should add them to your watch list.
Three Reasons to Add Zillow to Your Watch List.
- For Q1 2021, Zillow reported total revenue growth of 8% Y/Y. The yearly increase in revenue came from the 35% Y/Y growth in its IMT segment and 169% Y/Y growth of its mortgage segment. Even though Zillow sees a reacceleration in the Homes segment, it was still down 9% Y/Y.
- Zillow has a strong balance sheet with over $4.7B in cash and short-term investment and only $2.3B of debt.
- Margins are improving for Zillow. The company has finally reported positive TTM profit margins.
Three Reasons to Add MercadoLibre to Your Watch List.
- For Q1 2021, MercadoLibre reported strong FX neutral Y/Y revenue growth in its three main markets, 223% growth in Argentina, 139% growth in Brazil, and 148% growth in Mexico.
- MercadoLibre recently announced that it is investing $1.1B in Mexico as the e-commerce market continues to boom throughout Latin America.
- MercadoLibre is getting closer to achieving GAAP profitability. In Q1 2021, MercadoLibre reported net margins of roughly -0.3%.
Three Reasons to Add IPOE to Your Watch List.
- SoFi has recently announced that the merger should be complete, and the company will be trading under the new ticker "SOFI" by June 1.
- SPACS have taken an enormous hit with the most recent correction. IPOE stock price is down roughly 35% from its 52-week high.
- 2021 Guidance for SoFi shows 58% Y/Y growth in revenue and profitable adjusted EBITDA margins for the first time.
Click the video below for my full thoughts.
*Stock Prices used were the closing prices of May 7, 2021. The video was published on May 8, 2021.
