2 Beaten-Down Stocks to Buy and Hold for the Next 10 Years
Medtronic (NYSE:MDT) reported Q1 2027 revenue of $9.8B (+13.7% YoY) and raised guidance. Despite a 2% YTD decline, its long-term growth prospects and dividend history are noted. MercadoLibre (NASDAQ:MELI) saw Q2 revenue of $10.2B (+50% YoY) but lower EPS due to investments. Both companies are recommended as long-term holds.
How this was made
The 30-second read
Why it matters
Both companies delivered material earnings data; Medtronic raised guidance, while MercadoLibre showed strong revenue growth but weaker earnings.
Market read
Earnings beats and guidance updates provide actionable signals for traders; Medtronic appears a clear buy, while MercadoLibre presents a more nuanced opportunity.
What to watch
Potential regulatory scrutiny on Medtronic's diabetes segment split; competitive pressure on MercadoLibre from regional rivals.
Background
The article is a buy‑and‑hold recommendation that references recent earnings releases for two large‑cap companies.
Ticker impact
Medtronic reported Q1 2027 results with revenue up 13.7% YoY and raised full-year guidance, causing a post‑earnings price jump.
Potential modest rally of 3‑5% in the next few days.
Strong top‑line growth, EPS beat, and dividend continuity make the stock attractive for buy‑and‑hold investors.
MercadoLibre posted Q2 revenue up ~50% YoY but EPS fell, highlighting investment in free‑shipping and fintech that pressures margins.
Possible stabilization with 2‑4% upside if margin concerns ease.
Growth in GMV and fintech expansion could drive future earnings, but short‑term profit pressure remains.
Market effects
Highlights strength in medical devices and Latin American e‑commerce/fintech sectors.
Positive for U.S. healthcare investors; underscores growth potential in South American digital commerce.
Reinforces demand for innovative medical tech and cross‑border fintech platforms.
Counterpoint
Medtronic's valuation may already price in growth, limiting upside; MercadoLibre's margin erosion could worsen if credit losses rise.
Key entities
- CompanyMedtronic
Medical device manufacturer reporting Q1 2027 earnings beat and guidance raise.
- CompanyMercadoLibre
Latin American e‑commerce and fintech platform reporting Q2 revenue surge and margin pressure.
