MercadoLibre (MELI +0.38%) stock has been a phenomenal performer for investors. Over the last decade, a $10,000 investment would have grown to $176,000 at the time of this writing. Despite this run, the leading e-commerce operator in Latin America still has tremendous growth opportunity.
Wall Street continues to underestimate this high-growth business. Here's why investors could see substantial gains over the next decade.
Image source: Getty Images.
MercadoLibre is unstoppable
MercadoLibre's competitive moat continues to widen. It has successfully expanded beyond its core e-commerce marketplace by layering in other fintech services, including credit cards and mobile payments. It's creating a financial super app in one of the world's fastest-growing e-commerce markets.
NASDAQ: MELI
Key Data Points
It's for these reasons that the company continues to post numbers that are usually reserved for start-ups. Gross merchandise volume grew 35% year over year last quarter on a currency-neutral basis. This translated to year-over-year revenue growth of 49%.
With the stock trading at a price-to-sales multiple of 3.8, less than half its previous 10-year average of around 9.8, investors are getting solid value that can deliver market-beating returns. Analysts expect revenue to grow at an annualized rate of 21% through 2029, while expanding margins could lead to earnings growth of around 38%. MercadoLibre's growth could bring wealth-building returns to shareholders over the next decade.
