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These 3 Stocks Have Led The Nasdaq's Rebound

The tech-heavy Nasdaq has come roaring out of the gate in 2023, undoubtedly a welcomed development among investors following a less-than-ideal 2022.

In fact, January reflected the Nasdaq’s best performance since 2001.

So far, better-than-expected inflationary data and earnings have helped keep the market afloat, with the Federal Reserve also giving the market some much-needed juice in yesterday’s session.

Three stocks – Mercado Libre MELI, Baidu BIDU, and Lucid Group LCID – have all helped lead the Nasdaq’s rebound, residing well in the green year-to-date. This is shown in the chart below.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

How does each company stack up? Let’s take a closer look.

Mercado Libre

Mercado Libre is one of the largest e-commerce platforms in Latin America, offering a total of six integrated e-commerce services. Currently, the company sports the highly-coveted Zacks Rank #1 (Strong Buy).

Investors will undoubtedly appreciate MELI’s growth trajectory; the Zacks Consensus EPS Estimate of $8.20 for its current fiscal year indicates a sizable 390% Y/Y uptick in earnings.

And in FY23, estimates suggest a further 80% of bottom line growth.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Further, Mercado Libre has posted strong quarterly results as of late, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in back-to-back releases.

Just in the company’s latest quarter, MELI posted an 11% EPS beat paired with a marginal revenue surprise.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Baidu

Baidu offers a Chinese language search platform with a network of third-party websites and software applications. Presently, the company boasts a Zacks Rank #1 (Strong Buy).

Baidu shares have been scorching hot over the last three months, nearly doubling in value and indicating that buyers have taken control.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

In addition, the company does have a sizable cash pile, with cash and equivalents reported at roughly $26 billion in its latest quarter.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Keep an eye out for Baidu’s upcoming quarterly release on March 7th, 2023; the Zacks Consensus EPS Estimate of $2.14 indicates a climb of roughly 18% Y/Y.

Lucid Group

Formerly known as Churchill Capital Corp. IV, Lucid Group Inc. is an automotive company specializing in the EV industry. LCID is currently a Zacks Rank #2 (Buy).

Despite a short history, the company has witnessed significant revenue growth, sequentially growing sales by at least 60% across its last three quarters.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

Challenging business conditions have impacted the company significantly, as evidenced in its latest release; Lucid fell short of the Zacks Consensus EPS Estimate by more than 20% and reported revenue roughly 16% under expectations.

Bottom Line

January was a fantastic start to 2023, with stocks finally showing signs of life after a rough performance in 2022.

And all three stocks above – Mercado Libre MELI, Baidu BIDU, and Lucid Group LCID – have helped lead the Nasdaq’s rebound, rewarding shareholders with considerable gains year-to-date.

In addition, all three sport a favorable Zacks Rank, providing the cherry on top.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Baidu, Inc. (BIDU) : Free Stock Analysis Report

MercadoLibre, Inc. (MELI) : Free Stock Analysis Report

Lucid Group, Inc. (LCID) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research