• Both of these stocks are growing by leaps and bounds.

  • MercadoLibre boasts a cohesive ecosystem that is driving revenue and profits forward.

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Growth stocks can be found across a wide range of industries and sectors. These are companies that tend to grow faster than the overall market or their industry peers, and often control a specific niche within a profitable, expanding addressable market.

While growth stocks can be hit hard in market downturns, quality businesses with strong fundamentals that fit into this category can enrich your portfolio through the power of compounding returns over the long run. On that note, if you have $5,000 to invest in stocks right now, here are two names to consider the next time you go shopping for stocks.

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MercadoLibre (NASDAQ: MELI) is the clear leader in both e-commerce and digital financial services across more than a dozen countries in Latin America. Its established brand and extensive operational scale are significant competitive advantages that are difficult for new entrants to replicate.

It’s also the case that e-commerce penetration in Latin America is years behind developed markets like the U.S., so MercadoLibre retains a significant and durable growth runway as more economic activity moves online.

The region also has a large underbanked population that provides a substantial, growing addressable opportunity for the company’s fintech services. MercadoLibre’s various services reinforce each other and create a flywheel effect. For example, Mercado Pago (the company’s fintech arm) increases conversion rates for sellers.

Meanwhile, Mercado Envíos (the logistics network) provides faster shipping that boosts customer satisfaction and incentivizes repeat purchases. Mercado Crédito (the credit arm) offers loans to both consumers and merchants that’s driving higher transaction volumes overall. And the cycle continues.

Management has consistently reinvested in its infrastructure, including logistics hubs and technology upgrades to maintain its competitive edge and drive its long-term expansion. MercadoLibre’s financial growth continues to impress as well.

In the third quarter, the company’s net revenue came to $7.4 billion, a 40% year-over-year (YoY) hike from one year ago and the 27th consecutive quarter of over 30% YoY growth. Income from operations reached $724 million, up 30% from one year ago, and adjusted free cash flow was $206 million. Total gross merchandise volume (GMV) reached $16.5 billion, and total payment volume (TPV) was $71.2 billion — respective increases of 28% and 41% from one year ago.

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