The recent market selloff has left very few areas untouched. Fear and panic are taking hold as trade wars, tariffs, and economic uncertainty ripple through the financial landscape. But it’s not all doom and gloom. While the broader market pulls back, this downturn might present some compelling opportunities, especially for stocks trading near key support levels or at what could be considered a discount.

That seems to be the case with the two stocks below. Both have sold off sharply from their recent highs, yet they’ve also posted solid earnings beats. This intriguing combination of positive fundamentals and technical pullbacks suggests that these two names might be primed for a rebound.

MercadoLibre: A Blowout Quarter, Now 11% Off Highs

MercadoLibre, Inc. NASDAQ: MELI is Latin America’s largest e-commerce and fintech platform. It operates in 18 countries, connecting millions of buyers and sellers through its online marketplace and offering various digital payments, logistics, and financial services.

Despite delivering knockout Q4 2024 earnings, MELI has tumbled more than 11% from its recent 52-week highs. The pullback seems tied to broader U.S. stock market weakness and a dose of profit-taking rather than any fundamental issues with the company itself. For long-term investors, this retreat could be a welcome buying opportunity.

MercadoLibre’s Q4 numbers were nothing short of impressive. Revenue soared to $6.1 billion, a 37% year-over-year jump that easily beat Wall Street’s $5.9 billion estimate. Net income surged to $639 million, smashing the $402 million forecast. The marketplace remains on fire, with gross merchandise volume hitting $14.5 billion, up 56% when adjusted for currency swings. Meanwhile, its fintech arm, Mercado Pago, processed $58.9 billion in payments, up 33%, and its credit portfolio expanded by 74%, reaching $6.6 billion.

With the stock returning to a key support zone, previous resistance is now turned to support. This could be a golden entry point for investors seeking exposure to one of Latin America’s most dominant tech companies. The fundamentals are strong, and this dip may not last long.

PayPal: Solid Earnings, Oversold Stock

PayPal Holdings NASDAQ: PYPL needs no introduction as one of the world’s largest and most established fintech companies, dating back to 1998. However, despite its long-standing leadership in digital payments, its stock has recently fallen out of favor.

After an aggressive selloff post-earnings, PayPal is now in correction territory, down nearly 19% year-to-date. The Q4 2024 report, released on February 4, 2025, showed solid results that topped expectations. Revenue rose 4% year-over-year to $8.37 billion, edging past analyst estimates of $8.3 billion. Net income reached $1.2 billion, with adjusted earnings per share (EPS) of $1.19, beating the $1.14 consensus forecast. Total payment volume (TPV) climbed 7% to $437.8 billion, just shy of the $438.2 billion projection.

Adding to its long-term appeal, PayPal announced a $15 billion share buyback program, with $6 billion planned for 2025. This shows strong confidence in its growing cash flow, which surged 40% to $2.1 billion for the quarter.

Yet, despite these positives, the stock dropped nearly 10% post-earnings, mainly due to concerns about slowing branded checkout growth and slightly lower transaction take rates. Still, PayPal guided for 2025 EPS of $4.95 to $5.10, exceeding Wall Street’s $4.90 estimate, signaling a clear focus on growth and operational efficiency.

Now trading below its 200-day moving average, with an oversold RSI and hovering near a support zone around $65, PayPal might be an attractive buy-the-dip candidate. For investors willing to look past the short-term noise, this could be a prime moment to grab shares of a fintech leader with a strong turnaround narrative.

The Bottom Line

While fear has gripped the markets, not all sell-offs are permanent. MercadoLibre and PayPal have delivered strong earnings yet are trading at potential discounts. These two oversold stocks may be worth a closer look for investors seeking quality names with solid fundamentals and promising technical setups.

Before you consider MercadoLibre, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and MercadoLibre wasn’t on the list.

While MercadoLibre currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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March’s transition from winter to spring often brings renewed optimism and activity to financial markets as investors seek growth opportunities. March serves as a critical inflection point in the financial calendar, and it is also the end of the first quarter and a new fiscal year for some companies. This period can bring a flurry of earnings reports, updated guidance, and strategic announcements, often providing opportunities to locate businesses positioned to exceed expectations.

Three businesses in the entertainment, cloud computing, and aerospace sectors have exhibited financial growth and resilience despite the current challenging economic and geopolitical climate. These factors make these three stocks worth considering in March.

Warner Bros. Discovery: Remastering its Media Empire

Warner Bros. Discovery NASDAQ: WBD is currently navigating a transformative phase in its market story. Formed through a merger, the company is integrating a vast portfolio of assets spanning film, television, and direct-to-consumer streaming services. With brands encompassing Warner Bros. Pictures, HBO, Max, Discovery Channel, and CNN, Warner Bros. Discovery’s operations are multifaceted, encompassing studio production, network broadcasting, and direct streaming platforms.

As of March 5, 2025, Warner Bros. Discovery’s stock traded at $11.43, reflecting a recent upward trajectory with a 12.17% increase over the past month and an 8.14% gain year-to-date. This positive price movement occurs within a 52-week trading range of $6.64 to $12.70, contributing to a market capitalization of approximately $28.04 billion. This recent stock behavior, combined with fundamental shifts within the company and broader market, suggests catalysts that may propel further stock appreciation into March 2025.

Warner Bros. Discovery’s stock growth potential is driven by multiple factors, notably the expansion of its direct-to-consumer (DTC) streaming service, Max. The company’s focus on DTC profitability is key, with a notable 11% year-over-year increase in Q4 2024 Adjusted EBITDA indicating improved financial health and operational efficiency. Max’s subscriber growth to 116.9 million demonstrates strong consumer adoption, further contributing to this positive outlook. Additionally, the company’s commitment to debt reduction, with a targeted net leverage ratio of 3.8x, is viewed favorably by the market and reinforces financial stability.

Recent analyst sentiment also points towards a potentially positive outlook. Upgrades and price target revisions from multiple analysts suggest a growing consensus that Warner Bros. Discovery is undervalued and poised for a turnaround. This improved analyst outlook coincides with insider buying activity, often interpreted as a signal of internal confidence in the company’s prospects.

Snowflake Inc.: Powering the Data and AI Revolution

Snowflake Inc. NYSE: SNOW is a cloud-based data warehousing and analytics platform standing at the forefront of a new data revolution. Its Data Cloud platform allows organizations to consolidate and analyze vast datasets, facilitating data-driven decision-making and the development of advanced data applications, including those leveraging artificial intelligence (AI). 

As of March 5, 2025, Snowflake’s stock price was $177.66. While demonstrating recent price fluctuations, the stock exhibits strong year-to-date gains of 13.97% and a notable 57.54% increase over the past six months. Snowflake’s 52-week trading range spans from $107.13 to $194.40, and the company commands a substantial market capitalization of approximately $58 billion. These metrics and Snowflake’s strategic positioning in high-growth technology sectors indicate the potential for continued stock appreciation in March 2025.

Snowflake’s bullish outlook is driven by several catalysts, primarily consistent high revenue growth. Product revenue increased by 28% year-over-year in Q4 Fiscal Year 2025 and by 30% for the full fiscal year. Fiscal Year 2026 projections anticipate continued product revenue growth of approximately 24%. This sustained revenue expansion highlights the increasing demand for cloud-based data solutions and Snowflake’s leading market position.

A high net revenue retention rate of 126% demonstrates strong customer satisfaction and expansion. Snowflake’s financial health is further bolstered by positive free cash flow generation, with an adjusted free cash flow margin of 26% for the full Fiscal Year 2025, indicating efficient monetization of revenue growth.

Snowflake is strategically embracing artificial intelligence, further evidenced by its expanding AI capabilities and the establishment of a Silicon Valley AI Hub. This commitment to AI is expected to drive additional demand for Snowflake’s platform as businesses look to capitalize on AI-driven applications.

Embraer S.A.: Back in the Pilot’s Seat

Embraer S.A. NYSE: ERJ is a Brazilian aerospace conglomerate demonstrating a notable financial resurgence in a recovering aerospace sector. As a leading manufacturer of commercial jets with up to 150 seats, executive jets, and defense aircraft, Embraer benefits from diverse revenue streams across its Commercial Aviation, Executive Aviation, Defense and security, and Services and support segments.

As of March 5, 2025, Embraer’s stock price was $52.88, reflecting a significant upward trend. The stock has gained 36.41% year-to-date and an impressive 131.49% over the past year, trading near its 52-week high of $52.91. Embraer’s market capitalization is approximately $9.71 billion. Improved financial results and favorable industry dynamics underpin Embraer’s performance, potentially setting the stage for continued stock strength.

Embraer’s positive outlook is driven by several factors, including record-breaking earnings in the Fiscal Year 2024, which significantly exceeded analyst EPS estimates. This demonstrates a successful turnaround and improved operational efficiency. The company’s 2025 guidance projects further growth, with increased aircraft deliveries and revenue between $7.0 and $7.5 billion. A 14% year-over-year increase in aircraft deliveries in 2024, totaling 206 units, highlights the growing demand across Embraer’s business segments. The company’s record order backlog also ensures revenue visibility and supports future growth projections.

March 2025 Stock Outlook: Three Strategic Picks

Warner Bros. Discovery, Snowflake Inc., and Embraer S.A. each present distinct yet potentially rewarding investment propositions as market dynamics unfold into March 2025. Warner Bros. Discovery is undergoing a significant transformation with a focus on streaming profitability, leveraging its iconic content library to capture a growing share of the digital entertainment market.

Snowflake is positioned to capitalize on the expanding cloud data and AI markets, offering a cutting-edge platform that empowers businesses to unlock the full potential of their data assets. Embraer is benefiting from a successful financial turnaround and a recovering aerospace sector, showcasing its resilience and ability to meet the increasing demands of commercial and executive aviation. 

While operating in different sectors, these three companies share a common thread: they are demonstrating adaptability, innovation, and a clear strategic vision for future growth. Their recent financial performances, positive analyst sentiment, and positioning within evolving industries suggest a strong potential for continued momentum.

As the market transitions amid ongoing global economic shifts, these three companies are demonstrating they’re not just surviving but striving to thrive. They offer a degree of confidence and a glimpse of stability and growth to help investors build a healthy portfolio for an uncertain future.

Before you consider Snowflake, you’ll want to hear this.

MarketBeat keeps track of Wall Street’s top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on… and Snowflake wasn’t on the list.

While Snowflake currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here