Long-term Investors Should Consider This ‘Valuable Opportunity’

Investors looking for high-growth potential companies should consider the process of stock splits. Stock splits are usually executed when stock prices have seen significant and sustained increases. This occurrence is rare for regular companies, making it an ideal indicator of a company’s positive performance.

CrowdStrike (NASDAQ: CRWD) and MercadoLibre (NASDAQ: MELI) are prime examples of companies that have experienced tremendous stock price growth. Their stocks have soared 710% and 185% respectively over the past four years, far surpassing the 90% returns generated by the S&P 500 during the same period. These exceptional figures can be attributed to their strong financial performance and promising growth prospects, making both stocks worthwhile investments, regardless of the occurrence of a stock split.

1. CrowdStrike Holdings

CrowdStrike is a leading provider of cybersecurity software, offering its services in various markets. Notably, CrowdStrike leads the market in endpoint security and has gained market share over the past year. The company is also highly regarded for its intelligence services and cloud security.

CrowdStrike’s success can be attributed to the artificial intelligence (AI) boom and its ability to streamline security operations through consolidation. While most businesses rely on numerous products to meet their security needs, CrowdStrike enhances efficiency by consolidating all security operations onto one platform.

CrowdStrike reported strong financial results in Q4, with revenues increasing by 33% to $845 million. Non-GAAP net revenue more than doubled to $236 million. The customer retention rate stood at an impressive 98%, indicating the company’s ability to retain a significant portion of its customer base. Investors can expect similar results in the future.

In 2023, CrowdStrike secured the third position on Fortune Future 50, an annual ranking of the world’s largest companies based on long-term growth prospects. Wall Street expects CrowdStrike’s revenue to grow at a rate of 28% annually over the next five years.

2. MercadoLibre

MercadoLibre is the leading e-commerce company in Latin America. The company not only operates the most visited online marketplace in the region but also strengthens its position with related services through various subsidiaries. These include credit and payment processing solutions (Mercado Pago and Mercado Crédito), logistics support (Mercado Envíos), and digital advertising solutions (Mercado Ads).

MercadoLibre reported solid financial results in Q4, with revenues increasing by 42% to $4.2 billion. This represents a growth of 48% in the e-commerce segment and 38% in the fintech segment. GAAP net revenue remained stable at $165 million.

In the future, MercadoLibre has several advantages as e-commerce, digital payments, and digital advertising become more popular across Latin America. Wall Street expects the company’s sales volume to grow at a rate of 19% annually over the next five years.

According to Yahoo Finance

With their strong financial performance and promising growth prospects, CrowdStrike and MercadoLibre are two stocks that long-term investors should seriously consider. These companies have proven their ability to outperform the market and deliver substantial returns. Investing in such valuable opportunities can potentially provide significant gains for investors focused on long-term growth.

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