Key insights
- The author suggests Amazon, Intuit and Mercado Libre as undervalued growth stocks. Amazon's low price to operating cash flow and consistent growth, Intuit's overblown AI fears, and Mercado Libre's growth potential in Latin America are cited as reasons for potential returns. The author believes these stocks are currently 'under the radar' and represent compelling investment opportunities.
These are three of the most high quality compelling stocks out there right now, not in favor by the market:
- Amazon ($AMZN) possible 46% cagr return → Sub 16x to operating cash flow has historically been a brilliant entry point and growth isn’t slowing. Growth for the next three years should be low 20's * Intuit ($INTU) possible 34% return→ AI fears far overblown, 20x earnings is a rare opportunity. Not seen since 2013. Earnings forecasted to grow low to mid 10's * Mercado Libre ($MELI) possible 35% cagr return→ One of the few Latin American Amazon like giant, a good play on an online marketplace/fintech credit and a push away from U.S. technology dependence. Shares are down 36% from its 52-week high in May 2025. With a current price to operating cash flow of below 10, has also been a brilliant entry, comparable to that of Amazon's.
Any other suggestions?
EDIT: "under the radar" is a metaphor in this environment and a silly joke on my side